Majalgaon Sahakari Sakhar Karkhana Ltd, Beed V. Assistant Commissioner of Income-tax, Circle - 3, AURANGABAD

ITA 308/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1690 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 04-01-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 08-02-2018

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER SL. NO. ITA NO./CO.NO. NAME OF APPELLANT NAME OF RESPONDENT ASST. YEAR HEARD ON 12-03-2019 1 308/PUN/2018 MAJALGAON SAHAKARI SAKHAR KARKHANA LTD. A/P. SUNDARNAGAR, TAL. MAJALGAON, DIST BEED 431 131 PAN :AAABM0171G ACIT, CIRCLE-3, AURANGABAD 2013-14 2-4 985/PUN/2013 951/PUN/2014 1252/PUN/2014 ACIT, CIRCLE-2, AURANGABAD MAJALGAON SAHAKARI SAKHAR KARKHANA LTD. A/P. SUNDARNAGAR, TAL. MAJALGAON, DIST BEED 431 131 PAN :AAABM0171G 2008-09 2009-10 2010-11 5-6 1114/PUN/2012 1115/PUN/2012 ACIT, CIRCLE-1, KOLHAPUR SHRI CHHATRAPATI SHAHU SAHAKARI SAKHAR KARKHANA LTD. SHRIMANT JAYSINGRAO GHATAGE BHAVAN, MAL BUNGLOW, TAL. KAGAL, DIST. KOLHAPUR PAN : AAAAS1032M 2007-08 2008-09 7-10 1419/PUN/2011 1420/PUN/2011 1421/PUN/2011 1422/PUN/2011 LOKNETE BALASAHEB DESAI SAHAKARI SAKHAR KARKHANA LTD., DAULATNAGAR, MARALI, TAL. PATAN, DIST. SATARA PAN : AAAAB0362K ACIT, SATARA CIRCLE, SATARA 1990-91 1995-96 1998-99 2000-01 11-12 1682/PUN/2012 2607/PUN/2012 LOKNETE BALASAHEB DESAI SAHAKARI SAKHAR KARKHANA LTD., DAULATNAGAR, MARALI, TAL. PATAN, DIST. SATARA PAN : AAAAB0362K DCIT, SATARA CIRCLE, SATARA 2008-09 2009-10 SSK GROUP CASES 2 13 2601/PUN/2012 LOKNETE BABURAO PATIL SSK LTD., P.O. LAXMINAGAR, POST. ANGAR, DIST. SOLAPUR PAN : AAACL6834E ITO, WARD-1(1), SOLAPUR 2009-10 14 583/PUN/2011 PD. DR. VITHALRAO VIKHE PATIL SAHAKARI SAKHAR KARKHANA LTD., AT POST. PRAVARANAGAR, TAL. RAHATA DIST. AHMEDNAGAR 413712 PAN : AAAAP0848A ACIT (OSD), AHMEDNAGAR 1999-00 15 317/PUN/2016 ACIT, LATUR DR. BABASAHEB AMBEDKAR SAHAKARI SAKHAR KARKHANA LTD., ARVINDNAGAR, A/P. KESHEGAON, TAL & DIST. OSMANABAD PAN : AAAAD0955E 2011-12 16 446/PUN/2012 GADHINGLAJ TALUKA SAHAKARI SAKHAR KARKHANA LTD., HARLI, TAL. GADHINGLAJ, DIST. KOLHAPUR PAN : AAAAG0574A ITO, WARD-1(3), ICHALKARANJI 2000-01 17 1702/PUN/2012 MAKAI SAHAKARI SAKHAR KARKHANA LTD., BILARWADI (JINTI), TAL. KARMALA, DIST. SOLAPUR PAN : AAAAS6100N ACIT, CIRCLE-1, SOLAPUR 2008-09 18 2123/PUN/2012 ACIT, CIRCLE-2, SANGLI MANGANGA SAH. SAKHAR KARKHANA LTD., A/P. SONARSIDDHNAGAR, TAL. ADPADI, DIST. SANGLI PAN : AAAAM1794J 2007-08 19-22 548/PUN/2011 640/PUN/2015 641/PUN/2015 2556/PUN/2016 KADWA SSK LTD., RAJARAMNAGAR, MATEREWADI, DINDORI, NASHIK 422 209 PAN : AAAAK1052F ACIT, CIRCLE-1, NASHIK DCIT, CIRCLE-1, NASHIK 2002-03 2010-11 2011-12 2012-13 SSK GROUP CASES 3 23 -24 553/PUN/2011 1631/PUN/2011 JCIT (OSD), CIRCLE-1, NASHIK DCIT, CIRCLE-1, NASHIK KADWA SSK LTD., RAJARAMNAGAR, MATEREWADI, DINDORI, NASHIK 422 209 PAN : AAAAK1052F 2002-03 1998-99 25-26 846/PUN/2012 847/PUN/2012 DCIT, CIRCLE-2, SANGLI RAJARAMBAPU PATIL SSK LTD., POST. SAKHARALE, ISLAMPUR, TAL. WALWA, DIST. SANGLI PAN : AAAAR0790D 2007-08 2008-09 27 1837/PUN/2012 RAJARAMBAPU PATIL SSK LTD., POST. SAKHARALE, ISLAMPUR, TAL. WALWA, DIST. SANGLI PAN : AAAAR0790D DCIT, CIRCLE-2, SANGLI 2009-10 28 2608/PUN/2012 KISANVEER SATARA SSK LTD. KISANVEERNAGAR, TAL. WAI, DIST. SATARA PAN :AAAAK 0947M ITO, WARD-4, SATARA 2009-10 29 1506/PUN/2014 ACIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR KOPERGAON SAHAKARI SAKHAR KARKHANA LTD. GAUTAMNAGAR, PO. KOLPEWADI, TAL. KOPERGAON, DIST. AHMEDNAGAR PAN : AAATT3070H 2003-04 30-31 1645/PUN/2011 686/PUN/2014 KOPERGAON SSK LTD. NOW KNOWN AS KARMAVEER SHANKARRAO KALE SAHAKARI SAKHAR KARKHANA LTD., PO. KOLPEWADI, TAL. KOPERGAON, DIST. AHMEDNAGAR PAN : AAATT3070H DCIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR ACIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR 1998-99 2003-04 32 1615/PUN/2012 KARMYOGI SHANKARRAOJI PATIL SAHAKARI SAKHAR KARKHANA LTD., A/P.BHAVANINAGAR, TAL. INDAPUR, DIST. PUNE PAN : AAAAI0225N DCIT, CIRCLE-1(2), PUNE 2008-09 SSK GROUP CASES 4 33-34 2139/PUN/2012 2372/PUN/2012 DCIT, CIRCLE-1, KOLHAPUR KUMBHI KASARI SAHAKARI SAKHAR KARKHANA LTD., KUDITRE, TAL. KARVEER, DIST. KOLHAPUR PAN : AAAAK0363M 2006-07 1989-90 35 1442/PUN/2012 ACIT, CIRCLE-1, KOLHAPUR SADASHIVRAO MANDLIK KAGAL TALUKA SAHAKARI SAKHAR KARKHANA LTD., A/P. SADASHIV NAGAR, TAL. KAGAL, DIST. KOLHAPUR PAN : AAAAK1300Q 2007-08 36-37 558/PUN/2012 559/PUN/2012 DCIT, PUNE BHIMA SHANKAR SAHAKARI SAKHAR KARKHANA LTD., DATTATRAY NAGAR, PARGAON TARPHE, AVASARI BK TAL. AMBEGAON,DIST. PUNE PAN : AAAAB0949G 2007-08 2007-08 38 2268/PUN/2014 ACIT, CIRCLE-14, PUNE BHIMA SHANKAR SAHAKARI SAKHAR KARKHANA LTD., A/P. MADHUKARNAGAR (PATAS) TAL. DAUND, DIST. PUNE PAN : AAATB1781B 2008-09 39 283/PUN/2012 BHIMA SHANKAR SAHAKARI SAKHAR KARKHANA LTD., A/P. DATTATRAYNAGAR, TAL. AMBEGAON, DIST. PUNE PAN : AAAAB0949G ACIT, CIRCLE-1(1), PUNE 2007-08 40 2276/PUN/2014 BHIMA SAHAKARI SAKHAR KARKHANA LTD., A/P. MADHUKARNAGAR (PATAS) TAL. DAUND, DIST. PUNE PAN : AAATB1781B DCIT-1(1), PUNE 2011-12 SSK GROUP CASES 5 41 1165/PUN/2016 BHIMA SAHAKARI SAKHAR KARKHANA LTD., A/P. MADHUKARNAGAR (PATAS) TAL. DAUND, DIST. PUNE PAN : AAATB1781B ITO, WARD-14(4), PUNE 2012-13 42-44 1045/PUN/2013 1046/PUN/2013 1047/PUN/2013 BHAURAO CHAVAN SAHAKARI SAKHAR KARKHANA LTD., LAXMINAGAR, DEGAON-YELEGAON TAL. ARDHPUR, DIST. NANDED PAN : AAAAB0959Q ACIT, CIRCLE-3, NANDED DCIT, CIRCLE-3, NANDED 2006-07 2008-09 2009-10 45-47 1005/PUN/2013 1006/PUN/2013 1007/PUN/2013 DCIT, CIRCLE-3, NANDED DR. BABASAHEB AMBEDKAR CO-OP. SUGAR FACTORY, KESHEGAON, DIST. OSMANABAD PAN : AAAAD0955E 2007-08 2008-09 2009-10 48 1207/PUN/2011 ACIT, CIRCLE-2, AURANGABAD SHRI GAJANAN SAHAKARI SAKHAR KARKHANA LTD., SONAJI NAGAR, RAJURI, DIST. BEED PAN : 4003AX1809 1999-00 49-50 1020/PUN/2013 1021/PUN/2013 DCIT, CIRCLE-3, NANDED JAISHIVSHANKAR SAHAKARI SAKHAR KARKHANA LTD., SHESH NAGAR, MANJARI, TAL. MUKHED DIST. NANDED PAN : AABCJ0834F 2007-08 2009-10 51-52 538/PUN/2009 374/PUN/2013 DCIT, CIRCLE-2, KOLHAPUR SHRI CHHATRAPATI RAJARAM SAHAKARI SAKHAR KARKHANA LTD., S.NO.69, E-WARD, KASABA BAWADA, KOLHAPUR PAN : AAAAS4219A 2006-07 2009-10 53-54 65/PUN/2014 174/PUN/2012 ACIT, CIRCLE-2, AURANGABAD JAI BHAVANI SAHAKARI SAKHAR KARKHANA LTD., SHIVAJI NAGAR GADHI, TAL. GEORAI, BEED PAN : AAAAJ0612L 2007-08 1999-00 SSK GROUP CASES 6 55-56 2182/PUN/2012 2183/PUN/2012 JAWAHAR SHETKARI SAHAKARI SAKHAR KARKHANA LTD., HUPARI, SHRI KALLAPPANNA AWADENAGAR,HUPARI- YALGUD, TAL. HATKANANGALE, DIST. KOLHAPUR 416203 PAN : AAAAJ0571C DCIT, ICHALKARANJI CIRCLE, ICHALKARANJI 2007-08 2009-10 57-63 680/PUN/2011 1268/PUN/2011 1269/PUN/2011 850/PUN/2014 851/PUN/2014 852/PUN/2014 853/PUN/2014 DR. BABURAO BAPUJI TANPURE SAHAKARI SAKHAR KARKHANA LTD. SHRISHIVAJINAGAR, POST. RAHURI FACTORY, TAL. RAHURI DIST. AHMEDNAGAR PAN : AAAAD1287F ACIT(OSD), AHMEDNAGAR DCIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR 1999-00 1993-94 1994-95 2001-02 2005-06 2009-10 2010-11 64-65 994/PUN/2014 995/PUN/2014 ACIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR DR. BABURAO BAPUJI TANPURE SAHAKARI SAKHAR KARKHANA LTD. SHRISHIVAJINAGAR, POST. RAHURI FACTORY, TAL. RAHURI DIST. AHMEDNAGAR PAN : AAAAD1287F 2001-02 2005-06 66 1272/PUN/2015 ACIT, AHMEDNAGAR CIRCLE,AHMEDNAGAR SHRI DNYANESHWAR SAHKARI SAKHAR KARKHANA LTD., AT DNYANESHWAR NAGAR POST BHENDE, TAL. NEWASA DIST. AHMEDNAGAR 414 605 PAN : AAAAS4092H 2004-05 67-71 180/PUN/2011 181/PUN/2011 182/PUN/2011 183/PUN/2011 263/PUN/2012 SHRI DNYANESHWAR SAHKARI SAKHAR KARKHANA LTD., AT DNYANESHWAR NAGAR POST BHENDE, TAL. NEWASA DIST. AHMEDNAGAR 414 605 PAN : AAAAS4092H DCIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR ACIT (OSD) AHMEDNAGAR CIRCLE, AHMEDNAGAR DCIT, SPL RANGE-2, AURANGABAD 2001-02 2000-01 1999-00 1994-95 2007-08 SSK GROUP CASES 7 72 265/PUN/2011 GHODGANGA SAHAKARI SAKHAR KARKHANA LTD., RAOSAHEBNAGAR, NHAVARE, TAL. SHIRUR, DIST. PUNE 412211 PAN : AAAAG03561 ITO, RANGE-2, PUNE 1998-99 73 763/PUN/2013 DCIT, CIRCLE-1(2), PUNE GHODGANGA SAHAKARI SAKHAR KARKHANA LTD., RAOSAHEBNAGAR, NHAVARE, TAL. SHIRUR, DIST. PUNE 412211 PAN : AAAAG03561 1999-00 74 1168/PUN/2015 ACIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR KUKADI SAHKARI SAKHAR KARKHANA LTD., A/P. PIMPALGAON PISA, TAL. SHRIGONDA, DIST. AHMEDNAGAR- 413703 PAN : AAATK3702B 2011-12 75-76 829/PUN/2015 2547/PUN/2012 KUKADI SAHKARI SAKHAR KARKHANA LTD., A/P. PIMPALGAON PISA, TAL. SHRIGONDA, DIST. AHMEDNAGAR- 413703 PAN : AAATK3702B ACIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR 2011-12 2009-10 77-79 262/PUN/2011 129/PUN/2012 128/PUN/2012 PURNA SSK LTD., BASMATNAGAR, DIST. HONGOLI-431512 PAN : AAAAP0899B ACIT, SPECIAL RANGE- 2, AURANGABAD DCIT, SPECIAL RANGE- 2, AURANGABAD 1998-99 1999-00 1994-95 80-86 483/PUN/2014 1229/PUN/2013 1230/PUN/2013 1231/PUN/2013 296/PUN/2012 297/PUN/2012 573/PUN/2011 ACIT, CIRCLE-1, AURANGABAD PURNA SAHAKARI SAKHAR KARKHANA LTD., TQ. BASMATHNAGAR, DIST. HINGOLI PAN : AAAAP0899B 2006-07 2007-08 2008-09 2009-10 1999-00 1994-95 1998-99 87-90 488/PUN/2014 489/PUN/2014 490/PUN/2014 1015/PUN/2013 DCIT, CIRCLE-3, NANDED MANJRA SHETKARI SAH. KARKHANA LTD., AT POST. VILAS NAGAR, TA. DIST. LATUR PAN : AAAAM1527D 2000-01 2002-03 2006-07 2009-10 SSK GROUP CASES 8 91-92 1050/PUN/2013 1051/PUN/2013 MANJRA SHETKARI SAH. KARKHANA LTD., AT POST. VILAS NAGAR, TA. DIST. LATUR PAN : AAAAM1527D DCIT, CIRCLE-3, NANDED JT. CIT, SPL. RANGE-3 NANDED 2008-09 2009-10 93 1271/PUN/2012 THE MALEGAON SAHAKARI SAKHAR KARKHANA LTD., A/P. SHIVANAGAR, TAL. BARAMATI, DIST. PUNE PAN : AAATT2982L DCIT, CIRCLE-7, PUNE 2008-09 94 325/PUN/2016 ACIT, CIRCLE-3, AURANGABAD NSL SUGAR LTD. (FORMERLY JAY MAHESH SUGAR INDUSTRIES LTD.), PAWARWADI, TQ. MAJALGAON, DIST. BEED 431 131 PAN : AACFJ7975R 2009-10 95-96 1584/PUN/2014 1585/PUN/2014 AGASTI SAHAKARI SAKHAR KARKHANA LTD., POST AKOLE, TALUKA AKOLE DIST. AHMEDNAGAR- 422601 PAN :AAAAA1262B DCIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR 2007-08 2008-09 97-98 1666/PUN/2014 1667/PUN/2014 ACIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR AGASTI SAHAKARI SAKHAR KARKHANA LTD., A/P. AGASTINAGAR TALUKA AKOLE DIST. AHMEDNAGAR- 422601 PAN :AAAAA1262B 2007-08 2008-09 HEARD ON 13-03-2019 99 2083/PUN/2012 SHRI PANDURANG SAHAKARI SAKHAR KARKHANA LTD., A/P. SHREEPUR, TAL. MALSHIRAS, DIST. SOLAPUR PAN : AAATS5264J ACIT, CIRCLE-1, SOLAPUR 2009-10 SSK GROUP CASES 9 100 989/PUN/2013 DCIT, CIRCLE-3, NANDED SHRI VITHAL SAHKARI SAKHAR KARKHANA LIMITED, OMERGA, DIST. OSMANABAD PAN : AAAAS4776Q 2009-10 101 2599/PUN/2012 SHREE SHANKAR SSK LTD., SADASHIVNAGAR, TAL. MALSHIRAS DIST. SOLAPUR 413111 PAN :AAAAS3735M ACIT, CIRCLE-1, SOLAPUR 2009-10 102 349/PUN/2011 SHIRPUR SHETKARI SAHAKARI SAKHAR KARKHANA LIMITED, A/P. SHIVAJINAGAR, DAHIWAD, TAL. SHIRPUR, DIST. DHULE PAN : AAAAS1058H JCIT, SPL. RANGE-1, NASHIK 1997-98 103 2598/PUN/2012 SAHAKAR MAHARSHI SHANKARRAO MOHITE PATIL SSK LTD., AKLUJ, DIST. SOLAPUR -413118 PAN : AAAAS3736J ACIT, CIRCLE-1, SOLAPUR 2009-10 104-105 988/PUN/2014 989/PUN/2014 THE SANJIVANI (TAKIL) SAHAKARI SAKHAR LTD., SAHAJANANDNAGAR, SHINGNAPUR, TAL. KOPARGAON, DIST. AHMEDNAGAR PAN : AAAAT3291R DCIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR 2007-08 2010-11 106 2605/PUN/2012 VITHALRAO SHINDE PATIL SSK. LTD., PO GANGAMAI NAGAR, TAL. MADHA, DIST. SOLAPUR PAN :AAAAM1644B ACIT, CIRCLE-1, SOLAPUR 2009-10 107 2457/PUN/2012 SHRI VITHAL SAHAKARI SAKHAR KARKHANA LTD., A/P. VENUNAGAR, GURUSALE, TAL. PANDHARPUR, DIST. SOLAPUR PAN : AAAAS3892H ACIT, CIRCLE-1, SOLAPUR 2009-10 SSK GROUP CASES 10 108-111 575/PUN/2011 96/PUN/2012 97/PUN/2012 98/PUN/2012 ACIT, CIRCLE-3, NANDED TERNA SHETKARI SAHAKARI SAKHAR KARKHANA LTD., TERNA NAGAR, DHOKI, DIST. OSMANABAD 1999-00 2001-02 1995-96 1992-93 112-113 2610/PUN/2016 2611/PUN/2016 SHRI VRIDHESHWAR SAHAKARI SAKHAR KARKHANA LTD., A.P. ADINATHNAGAR, TAL. PATHARDI, DIST. AHMEDNAGAR- 414102 PAN : AABCV0782E ITO, WARD-4, AHMEDNAGAR 2012-13 2013-14 114 1117/PUN/2012 ACIT, CIRCLE-1, KOLHAPUR SHRI DUDHAGANGA VEDGANGA SAHAKARI SAKHAR KARKHANA LTD., A/P.BIDRI, TAL. KAGAL, DIST. KOLHAPUR PAN : AAAAS3732N 2008-09 115 90/PUN/2017 DR. BABASAHEB AMBEDKAR SSK LTD., ARVINDNAGAR, KESHEGAON, TAL. & DIST. OSMANABAD-413506 PAN : AAAAD0955E ACIT, LATUR CIRCLE, LATUR 2012-13 116 980/PUN/2013 ACIT, CIRCLE-1, AURANGABAD VAIDYANATH SANT EKNATH SAKHAR UDYOG, AT. EKNATH NAGAR, PAITHAN ROAD, TQ. PAITHAN, DIST. AURANGABAD PAN : AAGFV6446H 2009-10 117 735/PUN/2016 VAIDYANATH SANT EKNATH SAKHAR UDYOG, C/O. VAIDYANATH SAHAKARI SAKHAR KARKHANA AT POST. PANGRI TAL. PARLI-431515 DIST. BEED PAN : AAGFV6446H DCIT, CIRCLE-1, AURANGABAD 2012-13 SSK GROUP CASES 11 118-119 1464/PUN/2009 984/PUN/2013 ACIT, CIRCLE-2, AURANGABAD M/S. VAIDYANATH SAHAKARI SAKHAR KARKHANA LIMITED AT PANGRI, TQ. PARLI (V), DIST. BEED PAN : AAAAV0304P 2006-07 2009-10 120 1223/PUN/2016 DCIT, LATUR CIRCLE, LATUR VIKAS SAHAKARI SAKHAR KARKHANA LIMITED VAISHALI NAGAR, NIVI, TQ. LATUR, DIST. LATUR- 413531 PAN : AAAATV2893E 2011-12 121 702/PUN/2012 AJINKYATARA SAHAKARI SAKHAR KARKHANA LIMITED A/P. SHAHUNAGAR, SHENDRA TAL. & DIST. SATARA PAN : AAAAA0510E DCIT, SATARA CIRCLE, SATARA 2008-09 122 1041/PUN/2015 SHRI SANT KURMADAS SAHAKARI SAKHAR KARKHANA LIMITED, GANPATRAO SATHENAGAR, PADSALI, TAL. MADHA, DIST. SOLAPUR-413208 PAN :AAAAS6020M ACIT, CIRCLE-1, SOLAPUR 2011-12 123 2145/PUN/2012 SHRI TATYASAHEB KORE WARANA SAHAKARI SAKHAR KARKHANA LTD., A/P. WARANANAGAR, TAL. PANHALA, DIST. KOLHAPUR- 416113 PAN :AAAAT3108M ACIT, CIRCLE-1, KOLHAPUR 2009-10 124-126 2141/PUN/2012 205/PUN/2012 599/PUN/2012 DCIT, CIRCLE-1, KOLHAPUR ACIT, CIRCLE-1, KOLHAPUR SHRI TATYASAHEB KORE WARANA SAHAKARI SAKHAR KARKHANA LTD., A/P. WARANANAGAR, TAL. PANHALA, DIST. KOLHAPUR-416113 PAN :AAAAT3108M 2009-10 2007-08 2008-09 SSK GROUP CASES 12 127-128 244/PUN/2013 245/PUN/2013 ACIT, CIRCLE-2, SANGLI VISHWASRAO NAIK SAHAKARI SAKHAR KARKHANA LTD., A/P. YASHWANTNAGAR, TAL. SHIRALA, DIST. SANGLI PAN : AAAAV0215B 2006-07 2009-10 129-130 2526/PUN/2012 2604/PUN/2012 VISHWASRAO NAIK SAHAKARI SAKHAR KARKHANA LTD., YASHWANTNAGAR, CHIKHALI, TAL. SHIRALA, DIST. SANGLI PAN :AAAAV0215B DCIT, CIRCLE-2, SANGLI 2009-10 2006-07 131-134 831/PUN/2014 2455/PUN/2012 903/PUN/2012 1174/PUN/2016 THE SHRIGONDA SAHAKARI SAKHAR KARKHANA LTD., A/P. SHRIGONDA FACTORY, TAL. SHRIGONDA DIST. AHMEDNAGAR PAN : AAAAS4091E DCIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR ACIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR 2007-08 2009-10 2008-09 2006-07 135-136 2595/PUN/2012 1499/PUN/2016 DCIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR ACIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR THE SHRIGONDA SAHAKARI SAKHAR KARKHANA LTD., A/P. SHRIGONDA FACTORY, TAL. SHRIGONDA DIST. AHMEDNAGAR PAN : AAAAS4091E 2009-10 2006-07 137 264/PUN/2013 SAHYADRI SAHAKARI SAKHAR KARKHANA LTD., A/P. YASHWANTNAGAR, TAL. KARAD, DIST. SATARA PAN : AAAAS4070K ITO, WARD-1, SATARA 2009-10 138 2597/PUN/2012 SHREE ADINATH SSK LTD., BHALWANI, JEUR, TAL. KARMALA, DIST. SOLAPUR PAN :AAAAS4167M ACIT, CIRCLE-1, SATARA 2009-10 139-140 1009/PUN/2013 1010/PUN/2013 ACIT, CIRCLE-1, AURANGABAD SAMARTH SAHAKARI SAKHAR KARKHANA LTD., AT. PO. ANKUSHNAGAR, AMBAD, DIST. JALNA PAN : AADAS8482L 2008-09 2009-10 SSK GROUP CASES 13 141-143 1024/PUN/2013 1025/PUN/2013 1026/PUN/2013 SAMARTH SAHAKARI SAKHAR KARKHANA LTD., AT. PO. ANKUSHNAGAR, AMBAD, DIST. JALNA PAN : AADAS8482L ACIT, CIRCLE-1, AURANGABAD 2007-08 2008-09 2009-10 144-146 1290/PUN/2012 1291/PUN/2012 CO 3/PUN/2016 SHREE SOMESHWAR SSK LTD. TAL. BARAMATI, DIST. PUNE -412306 PAN : AAAAS2034B DCIT, CIRCLE-6, PUNE 2007-08 2008-09 2010-11 147 1171/PUN/2014 DCIT, CIRCLE-6, PUNE SHREE SOMESH WAR SSK LTD. SOMESHWARNAGAR, TAL. BARAMATI, DIST. PUNE -412306 PAN : AAAAS2034B 2010-11 148-149 1686/PUN/2012 1688/PUN/2012 ACIT, CIRCLE-3, NANDED SHETKARI SAHAKARI SAKHAR KARKHANA LTD., SWAMI RAMANAND TIRTHNAGAR, KILLARI, TQ. AUSA, DIST. LATUR PAN : 40003-AT-1797 1992-93 1994-95 150 2609/PUN/2012 SONHIRA SAHAKARI SAKHAR KARKHANA LTD., WANGI, TAL. KADEGAON, DIST. SANGLI-415305 PAN : AAATS7796R DCIT, CIRCLE-1, SANGLI 2009-10 151 1976/PUN/2012 ACIT, CIRCLE-3(1), DHULE SHREE SATPUDA TAPI PARISAR SAHAKARI SAKHAR KARKHANA LTD., P.O. PURUSHOTTAM NAGAR, TAL. SHAHADA, DIST. NANDURBAR PAN : 40003-AV-1761 1996-97 152 1694/PUN/2016 SHREE SATPUDA TAPI PARISAR SAHAKARI SAKHAR KARKHANA LTD., P.O. PURUSHOTTAM NAGAR,TAL. SHAHADA, DIST. NANDURBAR PAN : 40003-AV- 1761 DCIT, DHULE CIRCLE, DHULE 2012-13 SSK GROUP CASES 14 153 1493/PUN/2011 SIDDHESHWAR SAHAKARI SAKHAR KARKHANA LTD., SILOD, MANIKNAGAR, TAL. SILOD, DIST. AURANGABAD DCIT, SPL. RANGE-2, AURANGABAD 1993-94 154 514/PUN/2017 M/S. ASHOK SAHAKARI SAKHAR KARKHANA LTD., A/P. ASHOKNAGAR, TAL. SHRIRAMPUR, DIST. AHMEDNAGAR PAN : AACAA2410P ITO, WARD-4, AHMEDNAGAR 2013-14 155-156 1289/PUN/2011 1290/PUN/2011 DCIT, CIRCLE-1, NASHIK VASANTRAO DADA PATIL SSK LTD., AT POST VITHEWADI, POST LOHNER, TAL. DEOLA, NASHIK PAN : AAAAV0637K 2007-08 2008-09 157 1143/PUN/2015 ACIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR SHRI JAGDAMBA SAHAKARI SAKHAR KARKHANA LTD., A/P. RASHIN, TAL. KARJAT, DIST. AHMEDNAGAR PAN : AAAAS3208H 1992-93 158-160 2495/PUN/2012 2496/PUN/2012 868/PUN/2014 SAHAKAR MAHARSHI BHAUSAHEB THORAT SAHAKARI SAKHAR KARKHANA LTD., AT POST AMRUTNAGAR, TAL. SANGAMNER, DIST. AHMEDNAGAR PAN : AAAAS3893G ACIT, CIRCLE-1, AHMEDNAGAR DCIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR 2008-09 2009-10 2010-11 161-162 2590/PUN/2012 2591/PUN/2012 DCIT, AHMEDNAGAR CIRCLE, AHMEDNAGAR SAHAKAR MAHARSHI BHAUSAHEB THORAT SAHAKARI SAKHAR KARKHANA LTD., AT POST AMRUTNAGAR, TAL. SANGAMNER, DIST. AHMEDNAGAR PAN : AAAAS3893G 2008-09 2009-10 SSK GROUP CASES 15 / ORDER PER BENCH : THIS BATCH COMPRISING OF CERTAIN APPEALS BY THE ASSESSEE S AND THE OTHERS BY THE REVENUE RELATE TO DIFFERENT ASSESSMENT YEA RS CAPTIONED ABOVE. SINCE MOST OF THE APPEALS HAVE AT LEAST ON E COMMON ISSUE, WE ARE, THEREFORE, DISPOSING THEM OFF BY TH IS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. SOME OF THE APPEALS ARE RECALLED MATTERS. SOME OF THE APPEALS ARE TIME BARRED. WE HAVE GONE THROUGH THE REASONS GIVEN FOR DELAY IN THE PRESENTATION OF THE SUCH APPEALS, WITH WHICH WE ARE SA TISFIED. AS SUCH, THE DELAY IN ALL SUCH CASES IS CONDONED AND THE A PPEALS ARE ADMITTED FOR DISPOSAL ON MERITS. ASSESSEE (S) REPRESENTED BY SHRI PRAMOD SHINGTE SHRI PRASANNA JOSHI SHRI K. SRINIVASAN SHRI M.K. KULKARNI SHRI PRATEEK SANDBHOR SHRI LAXMAN R. NAWALE (EMPLOYER) MS. DEEPA KHARE NONE APPEARED SL.NOS. 16, 18, 35, 36 TO 41, 48, 49 TO 50, 51 TO 52, 93, 94, 99, 114, 148 TO 149 AND 150 REVENUE BY MS. NANDITA KANCHAN DATE (S) OF HEARING 12-03-2019 & 13-03-2019 DATE OF PRONOUNCEMENT 14-03-2019 SSK GROUP CASES 16 I. EXCESSIVE SUGARCANE PRICE PAID 3. A COMMON ISSUE INVOLVED IN ALMOST ALL THE APPEALS IS ON ACCOUNT OF THE ADDITION MADE BY THE ASSESSING OFFICER (AO) TOWARDS OF EXCESSIVE SUGARCANE PRICE PAID TO MEMBERS A S WELL AS NON-MEMBERS OF THE RESPECTIVE ASSESSEES. ON A REPRES ENTATIVE BASIS, WE ARE ESPOUSING THE FACTS IN THE CASE OF MAJALGA ON SAHAKARI SAKHAR KARKHANA LIMITED VS. ACIT, CIRCLE-3, AURANGABAD ITA NO.308/PUN/2018 FOR THE ASSESSMENT YEAR 2013-14. THE AS SESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF WHITE SUGAR. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO OBSE RVED THAT THE ASSESSEE PAID EXCESSIVE CANE PRICE, OVER AND ABO VE THE FAIR AND REMUNERATIVE PRICE (FRP) FIXED BY THE GOVERNMENT, TO ITS MEMBERS AS WELL AS NON-MEMBERS. ON BEING CALLED UPON TO JUSTIFY SUCH DEDUCTION, THE ASSESSEE GAVE CERTAIN EXPLANATION BY SUBMITTING THAT SUCH PAYMENT WAS SOLELY AND EXCLUSIVELY IN CONNECTION WITH THE BUSINESS AND THE ENTIRE AMOUNT WAS DEDUCTIB LE U/S.37(1) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CA LLED `THE ACT). RELYING ON THE JUDGMENT OF HONBLE SUPREME COURT IN THE CASE OF DCIT VS. SHRI SATPUDA TAPI PARISAR S.S.K. LTD. AND OTHERS (2010) 326 ITR 402, THE AO OPINED THAT THE EXCESSIVE PRICE PAID WAS IN THE NATURE OF `DISTRIBUTION OF PROFITS AND HENCE NOT DEDUCTIBLE. THIS IS HOW, HE COMPUTED THE EXCESSIVE CANE PR ICE SSK GROUP CASES 17 PAID BOTH TO THE MEMBERS AND NON-MEMBERS AT RS.22,02,95, 387/- AND MADE ADDITION FOR THE SAID SUM. THE LD. CIT(A) ECHOE D THE ASSESSMENT ORDER ON THIS POINT. 4. FACTS IN ALL OTHER CASES QUA THIS ISSUE, IN SO FAR AS THE ASSESSMENT PROCEEDINGS ARE CONCERNED, ARE MUTATIS MUTANDIS SIMILAR. IT IS SEEN THAT IN SOME CASES, THE ADDITION GOT DELETED , FULLY OR PARTLY BY THE LD. CIT(A), WHILST IN OTHERS THE ADDITION GOT SUSTAINED. THIS LED TO FILING OF THE CROSS APPEALS BOTH BY TH E ASSESSEE AS WELL AS THE REVENUE BEFORE THE TRIBUNAL. 5. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELE VANT MATERIAL ON RECORD. THERE IS CONSENSUS AD IDEM BETWEEN THE RIVAL PARTIES THAT THE ISSUE OF PAYMENT OF EXCESSIVE PRICE ON PU RCHASE OF SUGARCANE BY THE ASSESSES IS NO MORE RES INTEGRA IN VIEW OF THE RECENT JUDGMENT OF HONBLE SUPREME COURT IN CIT VS. TASGAON TALUKA S.S.K. LTD. (2019) 103 TAXMANN.COM 57 (SC) . THE HONBLE APEX COURT, VIDE ITS JUDGMENT DATED 05-03-2019, HAS ELABOR ATELY DEALT WITH THIS ISSUE. IT RECORDED THE FACTUAL MATRIX THAT THE ASSESSEE IN THAT CASE PURCHASED AND CRUSHED SUGARCANE AND PAID PRICE FOR THE PURCHASE DURING CRUSHING SEASONS 1996-97 AND 1997- 98, FIRSTLY, AT THE TIME OF PURCHASE OF SUGARCANE AND THEN , LATER, AS PER THE MANTRI COMMITTEE ADVICE. IT FURTHER NOTED THAT THE SSK GROUP CASES 18 PRODUCTION OF SUGAR IS COVERED BY THE ESSENTIAL COMMODITIES A CT, 1955 AND THE GOVERNMENT ISSUED SUGAR CANE (CONTROL) ORDER , 1966, WHICH DEALS WITH ALL ASPECTS OF PRODUCTION OF SUGARCAN E AND SALES THEREOF INCLUDING THE PRICE TO BE PAID TO THE CANE GRO WERS. CLAUSE 3 OF THE SUGAR CANE (CONTROL) ORDER, 1966 AUTHOR IZES THE GOVERNMENT TO FIX MINIMUM SUGARCANE PRICE. IN ADDITION, TH E ADDITIONAL SUGARCANE PRICE IS ALSO PAYABLE AS PER CLAUSE 5A OF THE CONTROL ORDER, 1966. THE AO IN THAT CASE CONCLUDED THAT TH E DIFFERENCE BETWEEN THE PRICE PAID AS PER CLAUSE 3 OF THE C ONTROL ORDER, 1966 DETERMINED BY THE CENTRAL GOVERNMENT AND THE PRICE DETERMINED BY THE STATE GOVERNMENT UNDER CLAUSE 5A OF THE CONTROL ORDER, 1966, WAS IN THE NATURE OF `DISTRIBUTION OF PROFITS AND HENCE NOT DEDUCTIBLE AS EXPENDITURE. HE, THEREFORE, MADE AN ADDITION FOR SUCH SUM PAID TO MEMBERS AS WELL AS NON-MEMB ERS. WHEN THE MATTER FINALLY CAME UP BEFORE THE HONBLE APEX COU RT, IT NOTED THAT CLAUSE 5A WAS INSERTED IN THE YEAR 1974 ON THE B ASIS OF THE RECOMMENDATIONS MADE BY THE BHARGAVA COMMISSION, WHIC H RECOMMENDED PAYMENT OF ADDITIONAL PRICE AT THE END OF THE SEASON ON 50:50 PROFIT SHARING BASIS BETWEEN THE GROWERS AND FACTO RIES, TO BE WORKED OUT IN ACCORDANCE WITH THE SECOND SCHEDULE TO THE CONTROL ORDER, 1966. THEIR LORDSHIPS NOTED THAT AT THE TIME WHEN ADDITIONAL PURCHASE PRICE IS DETERMINED/FIXED UNDER CLAUSE 5A, THE SSK GROUP CASES 19 ACCOUNTS ARE SETTLED AND THE PARTICULARS ARE PROVIDED BY THE CONCERNED CO-OPERATIVE SOCIETY AS TO WHAT WILL BE THE EXPENDITU RE AND WHAT WILL BE THE PROFIT ETC. CONSIDERING THE FACT THAT STATUTORY MINIMUM PRICE (SMP), DETERMINED UNDER CLAUSE 3 OF THE CONTR OL ORDER, 1966, WHICH IS PAID AT THE BEGINNING OF THE SEASON, IS DEDUCTIBLE IN THE ENTIRETY AND THE DIFFERENCE BETWEEN SMP DETERMINED UNDER CLAUSE 3 AND SAP/ADDITIONAL PURCHASE PRICE DETERMINED UNDER CLAUSE 5A, HAS AN ELEMENT OF DISTRIBUTION OF PROFIT WHICH CANNOT BE ALLOWED AS DEDUCTION, THE HONBLE SUPRE ME COURT REMITTED THE MATTER TO THE FILE OF THE AO FOR CONSIDERING THE MODALITIES AND MANNER IN WHICH SAP/ADDITIONAL PURCHASE PRICE/FINAL PRICE IS DECIDED. HE HAS BEEN DIRECTED TO CARRY OUT AN EXERCISE OF CONSIDERING ACCOUNTS/BALANCE SHEET AND THE MATER IAL SUPPLIED TO THE STATE GOVERNMENT FOR THE PURPOSE OF DECIDING/FIXING THE FINAL PRICE/ADDITIONAL PURCHASE PRICE/SAP UNDER CLAUSE 5A OF THE CONTROL ORDER, 1966 AND THEREAFTER DETERM INE AS TO WHAT AMOUNT WOULD FORM PART OF THE DISTRIBUTION OF PROFIT AND THE OTHER AS DEDUCTIBLE EXPENDITURE. THE RELEVANT FINDINGS OF THE HONBLE APEX COURT ARE REPRODUCED AS UNDER:- 9.4. ..... THEREFORE, TO THE EXTENT OF THE COMPON ENT OF PROFIT WHICH WILL BE A PART OF THE FINAL DETERMINATION OF SAP AN D/OR THE FINAL PRICE/ADDITIONAL PURCHASE PRICE FIXED UNDER CLAUSE 5A WOULD CERTAINLY BE AND/OR SAID TO BE AN APPROPRIATION OF PROFIT. HOWEVER, AT THE SAME TIME, THE ENTIRE/WHOLE AMOUNT OF DIFFER ENCE BETWEEN THE SSK GROUP CASES 20 SMP AND THE SAP PER SE CANNOT BE SAID TO BE AN APPR OPRIATION OF PROFIT. AS OBSERVED HEREINABOVE, ONLY THAT PART/COMPONENT OF PROFIT, WHILE DETERMINING THE FINAL PRICE WORKED OUT/SAP/AD DITIONAL PURCHASE PRICE WOULD BE AND/OR CAN BE SAID TO BE AN APPROPRIATION OF PROFIT AND FOR THAT AN EXERCISE IS TO BE DONE BY THE ASSESSING OFFICER BY CALLING UPON THE ASSESSEE TO PRODUCE THE STATEME NT OF ACCOUNTS, BALANCE SHEET AND THE MATERIAL SUPPLIED TO THE STAT E GOVERNMENT FOR THE PURPOSE OF DECIDING/FIXING THE FINAL PRICE/ADDI TIONAL PURCHASE PRICE/SAP UNDER CLAUSE 5A OF THE CONTROL ORDER, 19 66. MERELY BECAUSE THE HIGHER PRICE IS PAID TO BOTH, MEMBERS A ND NON- MEMBERS, QUA THE MEMBERS, STILL THE QUESTION WOULD REMAIN WITH RESPECT TO THE DISTRIBUTION OF PROFIT/SHARING OF TH E PROFIT. SO FAR AS THE NON-MEMBERS ARE CONCERNED, THE SAME CAN BE DEAL T WITH AND/OR CONSIDERED APPLYING SECTION 40A (2) OF THE ACT, I.E ., THE ASSESSING OFFICER ON THE MATERIAL ON RECORD HAS TO DETERMINE WHETHER THE AMOUNT PAID IS EXCESSIVE OR UNREASONABLE OR NOT.... .... 9.5 THEREFORE, THE ASSESSING OFFICER WILL HAVE TO T AKE INTO ACCOUNT THE MANNER IN WHICH THE BUSINESS WORKS, THE MODALIT IES AND MANNER IN WHICH SAP/ADDITIONAL PURCHASE PRICE/FINAL PRICE ARE DECIDED AND TO DETERMINE WHAT AMOUNT WOULD FORM PART OF THE PRO FIT AND AFTER UNDERTAKING SUCH AN EXERCISE WHATEVER IS THE PROFIT COMPONENT IS TO BE CONSIDERED AS SHARING OF PROFIT/DISTRIBUTION OF PROFIT AND THE REST OF THE AMOUNT IS TO BE CONSIDERED AS DEDUCTIBLE AS EXPENDITURE. 6. BOTH THE SIDES ARE UNANIMOUSLY AGREEABLE THAT THE EXTA NT ISSUE OF DEDUCTION FOR PAYMENT OF EXCESSIVE PRICE FOR PURCHASE OF SUGARCANE, RAISED IN MOST OF THE APPEALS UNDER CONSIDERA TION, IS SQUARELY COVERED BY THE AFORESAID JUDGMENT OF THE HONBLE SUPREME COURT. RESPECTFULLY FOLLOWING THE PRECEDENT, WE SET - ASIDE THE IMPUGNED ORDERS ON THIS SCORE AND REMIT THE MATTER TO THE FILE OF THE RESPECTIVE A.OS. FOR DECIDING IT AFRESH AS PER LAW IN CONSONANCE WITH THE ARTICULATION OF LAW BY THE HONBLE SUPREME COURT IN THE AFORENOTED JUDGMENT. THE AO WOULD ALLOW DEDUC TION FOR THE PRICE PAID UNDER CLAUSE 3 OF THE SUGAR CANE (CONTR OL) SSK GROUP CASES 21 ORDER, 1966 AND THEN DETERMINE THE COMPONENT OF DISTRIBUTION OF PROFIT EMBEDDED IN THE PRICE PAID UNDER CLAUSE 5A, BY CONS IDERING THE STATEMENT OF ACCOUNTS, BALANCE SHEET AND OTHER RELEVANT MATERIAL SUPPLIED TO THE STATE GOVERNMENT FOR THE PURPOSE OF DECIDING/FIXING THE FINAL PRICE/ADDITIONAL PURCHASE PRICE/SAP UNDER THIS CLAUSE. THE AMOUNT RELATABLE TO THE PROFIT COMPONENT OR SHARING OF PROFIT/DISTRIBUTION OF PROFIT PAID BY THE ASSESSEE, WHICH WOULD BE APPROPRIATION OF INCOME, WILL NOT BE ALLOWED AS DEDUCTION, WHILE THE REMAINING AMOUNT, BEING A CHARGE AGAINS T THE INCOME, WILL BE CONSIDERED AS DEDUCTIBLE EXPENDITURE. AT THIS STAGE, IT IS MADE CLEAR THAT THE DISTRIBUTION OF PROFITS CAN ONLY BE QUA THE PAYMENTS MADE TO THE MEMBERS. IN SO FAR AS THE NON- MEMBERS ARE CONCERNED, THE CASE WILL BE CONSIDERED AFRES H BY THE AO BY APPLYING THE PROVISIONS OF SECTION 40A(2) OF THE ACT, AS HAS BEEN HELD BY THE HONBLE SUPREME COURT SUPRA. NEEDLESS TO SAY, THE ASSESSEE WILL BE ALLOWED A REASONABLE OPPORTUNITY OF HEAR ING BY THE AO IN SUCH FRESH DETERMINATION OF THE ISSUE. 7. IT IS NOTED THAT IN SOME OF THE APPEALS, THE ASSESSEE S HAVE RAISED AN ALTERNATE GROUND FOR ALLOWING DEDUCTION U/S.80P IN RESPECT OF THE ADDITION. SSK GROUP CASES 22 8. THE LD. ARS, IN SOME OF THE CASES, WHICH WERE RE PRESENTED BY THEM, WERE FAIR ENOUGH NOT TO PRESS SUCH GROUND AS IT IS ONLY AN ALTERNATE GROUND AND HAVING BECOME INFRUCTUOUS IN VIEW OF TH E RESTORATION OF THE MATTER TO THE AO. NO ARGUMENT WAS ADVANC ED IN SUPPORT OF SUCH GROUND IN OTHER CASES, EVEN WHERE THE LD. ARS PARTICIPATED IN PROCEEDINGS BEFORE THE TRIBUNAL. THEREFORE, THE SAID ALTERNATE GROUND IN ALL SUCH CASES IS DISMISSED. 9. APART FROM THE ABOVE ISSUE, WHICH IS COMMON IN ALMOST ALL THE APPEALS IN THIS BATCH, THERE ARE CERTAIN APPEALS HAVING OTH ER ISSUES ALSO. WE WILL TAKE UP SUCH ISSUES ONE BY ONE. II. ADDITION FOR SUGAR GIVEN TO MEMBERS AT CONCESSIONAL RATES [APPEALS IN WHICH KRISHNA SAHAKARI SAKHAR KARKHANA LIMITED (SC) NOT CONSIDERED BY LOWER AUTHORITIES ] 10. IN SOME OF THE APPEALS, THERE IS ANOTHER ISSUE OF GIVING SUGAR TO MEMBERS AT CONCESSIONAL RATES. SUCH GROUND IS AGAINST THE DISALLOWANCE ON ACCOUNT OF PRICE DIFFERENCE ON CERTAIN QUAN TITY OF SUGAR GIVEN TO THE MEMBERS AT CONCESSIONAL RATE. 11. HAVING HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT THE AO MADE ADDITION O F THE SSK GROUP CASES 23 DIFFERENCE BETWEEN THE MARKET PRICE AND THE CONCESSIONAL P RICE AT WHICH SUGAR (FINAL PRODUCT) WAS GIVEN TO FARMERS AND CANE GROWERS. IN THIS REGARD, IT IS OBSERVED THAT THIS ISSUE HAS BEEN CONSID ERED BY THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. KRISHNA SAHAKARI SAKHAR KARKHANA LIMITED (2012) 27 TAXMANN.COM 16 2 (SC). VIDE JUDGMENT DATED 25-09-2012, THE HONBLE SUPREM E COURT NOTICED THAT THE DIFFERENCE BETWEEN THE AVERAGE PRICE O F SUGAR SOLD IN THE MARKET AND THE PRICE OF SUGAR SOLD BY TH E ASSESSEE TO ITS MEMBERS AT CONCESSIONAL RATE WAS TAXED BY THE DEPARTM ENT UNDER THE HEAD APPROPRIATION OF PROFIT. THE HONBLE SUMM IT COURT REMITTED THE MATTER TO THE CIT(A) FOR CONSIDERING, INTER ALIA ,: WHETHER THE ABOVEMENTIONED PRACTICE OF SELLING SUGAR AT CONCESSIONAL RATE HAS BECOME THE PRACTICE OR CUSTOM IN THE C O- OPERATIVE SUGAR INDUSTRY?; AND WHETHER ANY RESOLUTION HAS BEEN PASSED BY THE STATE GOVERNMENT SUPPORTING THE PRACTICE?; THE CIT(A) WOULD ALSO CONSIDER ON WHAT BASIS THE QUANTITY OF THE FINAL PRODUCT, I.E. SUGAR, IS BEING FIXED FOR SALE TO FARMERS/CAN E GROWERS/MEMBERS EACH YEAR ON MONTH-TO-MONTH BASIS, APAR T FROM OTHERS FROM DIWALI? THE ISSUE UNDER CONSIDERATION CAN BE DECIDED BY AN APPROPRIATE LOWER AUTHORITY ONLY ON THE TOUCH STONE OF THE RELEVANT FACTORS NOTED IN THE ABOVE JUDGMENT. IN OUR CONSIDERED OPINION, IT WOULD BE JUST AND FAIR IF THE IMPUGNED ORDERS SSK GROUP CASES 24 ON THIS SCORE ARE SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF AOS, INSTEAD OF TO THE CITS(A), FOR FRESH CONSIDERATION A S TO WHETHER THE DIFFERENCE BETWEEN THE AVERAGE PRICE OF SUGAR SOLD IN THE MARKET AND THAT SOLD TO MEMBERS AT CONCESSIONAL RATE IS APPROPRIATION OF PROFIT OR NOT, IN THE LIGHT OF THE DIRECTIONS GIVE N BY THE HONBLE SUPREME COURT IN THE CASE OF KRISHNA SAHAKARI SAKHAR KARKHANA LIMITED (SUPRA) . RESTORATION TO THE AO IS NECESSITATED BECAUSE, FOLLOWING THE JUDGMENT OF THE HONBLE APEX COURT IN THE CASE OF TASGAON TALUKA S.S.K. LTD. (SUPRA) , WE HAVE REMITTED THE ISSUE OF PAYMENT OF EXCESSIVE PRICE TO THE FILE O F AO, AND AS SUCH, THE INSTANT ISSUE CANNOT BE SENT TO LD. CIT(A) AS IT WOULD AMOUNT TO SIMULTANEOUSLY SENDING ONE PART OF THE SAME ASSESSMENT ORDER TO THE AO AND OTHER TO THE CIT(A), WHICH IS NOT APPROPRIATE. WE ORDER ACCORDINGLY. III. DISALLOWANCE OF CONTRIBUTION TO AREA DEVELOPMENT FUND 12. ANOTHER ISSUE IN SOME OF THE APPEALS IS AGAINST THE DELETION/CONFIRMATION OF DISALLOWANCE MADE BY THE AO ON ACCOU NT OF AREA DEVELOPMENT FUND. 13. HAVING HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD, IT IS SEEN THAT SIMILAR ISSUE CAME UP FOR SSK GROUP CASES 25 CONSIDERATION BEFORE THE HONBLE SUPREME COURT IN THE CASE OF SIDDHESHWAR SAHAKARI SAKHAR KARKHANA LIMITED VS. CIT AND OTHERS (2004) 270 ITR 1 (SC). IN THAT CASE, THE HONBLE SUPREME COURT OBSERVED IN PARA 44 THAT THE RECEIPTS IN THE FORM OF A REA DEVELOPMENT FUND ALWAYS REMAINED WITH THE ASSESSEE. IT ALSO NOTED THE CONTENTION OF THE ASSESSEE IN PARA 45 THAT THE RE ALISATIONS MADE TOWARDS THE AREA DEVELOPMENT FUND WERE IMPRESSED WITH THE SPECIFIC LEGAL OBLIGATION TO SPEND THE MONEY FOR SPECIFIED PURPOSES WHICH WERE UNRELATED TO THE BUSINESS OF THE SUG AR FACTORY AND HENCE, COULD NOT BE TREATED AS INCOME OF THE ASSESSEE . EVENTUALLY, THE HONBLE SUPREME COURT REMITTED THE MATTER BACK FOR FRESH DETERMINATION. IT IS NOTICED THAT IN THE APPEALS UNDE R CONSIDERATION, THE LD. CITS(A) HAVE NOT CONSIDERED THE IMPA CT OF THE JUDGMENT OF THE HONBLE SUPREME COURT IN SIDDHESHWAR SAHAKARI SAKHAR KARKHANA LIMITED (SUPRA) AND DECIDED THE ISSUE WITHOUT TAKING NOTE OF THE FACTORS DIRECTED TO BE CONSIDERED IN THE AFORENOTED CASE. IN VIEW OF THE ABOVE DECISION OF HONBL E SUPREME COURT, WE SET-ASIDE SUCH IMPUGNED ORDERS AND REMIT THE MATTER TO THE FILE OF THE RESPECTIVE AOS FOR DECIDING THE ISSUE AFRESH IN CONFORMITY WITH THE GUIDELINES LAID DOWN BY THE HONBLE APEX COURT IN THE ABOVE JUDGMENT. SSK GROUP CASES 26 IV. DISALLOWANCE FOR LATE DEPOSIT OF EMPLOYEES SHARE IN EPF ETC. 14. ANOTHER ISSUE IN SOME OF THE APPEALS IS AGAINST THE CONFIRMATION OF DISALLOWANCE FOR DELAYED DEPOSIT OF ESI / EPF EMPLOYEES SHARE. DURING THE COURSE OF ASSESSMENT PROCE EDINGS, IT WAS NOTICED THAT THE ASSESSEE BELATEDLY DEPOSITED THE AMOUNT OF EMPLOYEES CONTRIBUTION TOWARDS EPF AND ESI. THE DETAILS OF DUE DATES AND ACTUAL PAYMENTS HAVE BEEN SET OUT IN THE RESPEC TIVE ASSESSMENT ORDERS. THE AO, THEREFORE, MADE SUCH DISALLOW ANCE, WHICH CAME TO BE AFFIRMED IN THE FIRST APPEAL. 15. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE R ELEVANT MATERIAL ON RECORD. IT IS FOUND THAT THE ISSUE RAISED HEREIN IS NO MORE RES INTEGRA . THE HONBLE APEX COURT IN THE CASE OF CIT V. ALOM EXTRUSIONS LIMITED (2009) 319 ITR 306 (SC) HAS HELD THAT THE AMENDMENT TO FIRST PROVISO AND OMISSION OF THE SECOND PROVIS O TO SECTION 43B BY THE FINANCE ACT, 2003, IS RETROSPECTIVE. THE HONBLE DELHI HIGH COURT IN THE CASE OF CIT V. AIMIL LIMITED (2010) 321 ITR 508 (DELHI) HAS ALLOWED DEDUCTION IN RESPECT OF EMPLOYEES SHARE WHEN THE AMOUNT WAS PAID BEFORE THE DUE DATE. WHEN WE CONSIDER THESE TWO JUDGMENTS, IT IS MANIFESTED THAT BOT H THE EMPLOYERS AND EMPLOYEES CONTRIBUTION ARE ALLOWABLE AS SSK GROUP CASES 27 DEDUCTION IF THESE ARE DEPOSITED ALBEIT BELATEDLY UNDER THE RESPECTIVE ACTS, BUT BEFORE THE DUE DATE OF FILING OF RETURN U/S 139(1) OF THE ACT. 16. IT IS SEEN AS AN ADMITTED POSITION THAT THE ASSESSEES IN SUCH CASES DEPOSITED THE EMPLOYEES CONTRIBUTION TOWARDS EPF AND ESIC BEFORE THE DUE DATE U/S 139(1) OF THE ACT. RESPECTF ULLY FOLLOWING THE AFORENOTED JUDGMENT OF THE HONBLE DELHI HIGH COURT, WE ORDER FOR THE DELETION OF THE ADDITION SUSTAINED IN THE FIRST APPEALS ON ACCOUNT OF LATE DEPOSIT OF EMPLOYEES CONTR IBUTION TO THE PROVIDENT FUND. V. PROVISION FOR VASANTDADA SUGAR INSTITUTE (VSI) CONTRIBUTION : 17. ANOTHER ISSUE RAISED IN SOME OF THE APPEALS IS AGAIN ST THE CONFIRMATION OF DISALLOWANCE OF CONTRIBUTION TO VASANTDADA S UGAR INSTITUTE (VSI). THE AO OBSERVED THAT THE ASSESSEE MADE PROVISION FOR VASANTDADA SUGAR INSTITUTE (VSI) CONTRIBUTION AND CLAIMED WEIGHTED DEDUCTION AT 125% U/S.35(1)(II) OF THE ACT. THE SAID AMOUNT WAS NOT PAID TO THE INSTITUTE. THE SAME BEING ONLY IN THE NATURE OF PROVISION, THE AO DID NOT ALLOW DEDUCTION U/S.35(1)(II). THE LD. CIT(A) DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE BY FOLLOWING AN ORDER PASSED BY THE PUNE BENCHE S OF THE SSK GROUP CASES 28 TRIBUNAL IN THE CASE OF BHIMA S.S.K. LTD. (ITA NO.1414/PUN/2000). 18. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. IT IS FOUND THAT THE LD. CIT(A) HAS DE TERMINED THIS ISSUE IN FAVOUR OF THE ASSESSEE BY FOLLOWING THE ORDER PASSED BY THE PUNE BENCHES OF THE TRIBUNAL IN THE CASE OF BHIMA S .S.K. LTD. (SUPRA). NO MATERIAL HAS BEEN PLACED ON RECORD TO SHOW THAT THIS ORDER OF THE TRIBUNAL HAS BEEN REVERSED OR MODIFIED IN ANY MANNER BY THE HONBLE HIGH COURT. RESPECTFULLY FOLLOWING THE PRECEDENT, WE DECIDE THIS ISSUE IN FAVOUR OF THE ASSESSEE . VI. CONTRIBUTION TO CHIEF MINISTER RELIEF FUND : 19. ANOTHER ISSUE RAISED IN SOME OF THE APPEALS IS AGAIN ST THE CONFIRMATION OF ADDITION ON ACCOUNT OF CONTRIBUTION MADE TO CH IEF MINISTER RELIEF FUND. 20. THE ASSESSEE CONTRIBUTED CERTAIN AMOUNT IN THE CHIEF MINISTER RELIEF FUND AND CLAIMED DEDUCTION FOR THE SAME IN ITS PROFIT AND LOSS ACCOUNT. THE AO OBSERVED THAT THIS FUND ESTABLISHED BY THE STATE GOVERNMENT IS COVERED U/S.80G(IIIHF) OF THE ACT AND, A S SUCH, THE CONTRIBUTION IS DEDUCTIBLE AT 50% OF THE AGGREGATE OF THE SU MS SPECIFIED. HE, THEREFORE, DISALLOWED THE AMOUNT, WHICH ACTION CAME TO BE COUNTENANCED IN THE FIRST APPEAL. SSK GROUP CASES 29 21. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. THERE IS NO DISPUTE THAT THE ASSESSEE DID MAKE CONTRIBUTION TO THE CHIEF MINISTER RELIEF FUND. AS AGAINST THE ASSESSEE CLAIMING THE ENTIRE AMOUNT AS DEDUCTION IN ITS PROFIT AND LOSS ACCOUNT, THE AO OPINED THAT THE SAID CONTRIBUTION WAS ELIGIB LE FOR DEDUCTION U/S. 80G(IIIHF) OF THE ACT AT THE RATE OF 50% ALO NG WITH OTHER QUALIFYING SUMS. THE LD. CIT(A) SUSTAINED THE ENTIR E ADDITION OVERLOOKING THE FACT THAT DEDUCTION U/S.80G(IIIHF) WAS N OT ALLOWED BY THE AO ON SUCH CONTRIBUTION IN THE COMPUTATION OF TOTAL INCOME. UNDER THESE CIRCUMSTANCES, WE CANNOT UPHOLD TH E DISALLOWANCE OF THE ENTIRE AMOUNT CLAIMED AS DEDUCTION BY THE ASSESSEE IN ITS PROFIT AND LOSS ACCOUNT. APPROVING THE ADDITIONS MADE, WE REMIT THE MATTER TO THE FILE OF THE AO FOR GRANTING TH E DEDUCTION U/S.80G(IIIHF) AS PER LAW AFTER ALLOWING A REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. VII. KHODKI CHARGES 22. ANOTHER ISSUE RAISED IN SOME OF THE APPEALS IS AGAIN ST NON- GRANTING OF DEDUCTION TOWARDS PAYMENT OF KHODKI CHARGES. ON BEING CALLED UPON TO JUSTIFY SUCH DEDUCTION, THE ASSESSEE SUB MITTED THAT THIS PAYMENT WAS MADE AS PER THE ORDER OF THE DIRECTOR OF SUGAR. IT WAS FURTHER EXPLAINED THAT AT THE TIME OF HARVESTIN G, THE SSK GROUP CASES 30 HARVESTING LABOUR CUT MORE PART OF THE UPPER SIDE OF THE C ROP AND THEREFORE, TO COMPENSATE LOSS IN WEIGHT TO THE GROWER, THE SAID KHODKI CHARGES WERE PAID TO THE FARMERS. THE AO WAS NO T SATISFIED WITH THE EXPLANATION TENDERED ON BEHALF OF THE ASSES SEE. HE NOTED THAT THE COMMISSIONER OF SUGAR, ON BEHALF OF GOVERNMENT OF MAHARASHTRA, WAS ISSUING DIRECTIONS FOR PAYM ENT OF KHODKI CHARGES ONLY ON THE BASIS OF PROPOSAL SENT BY THE R ESPECTIVE ASSESSEES. THE LD. CIT(A) DELETED THE ADDITION BY RELYING O N THE JUDGMENT OF HONBLE BOMBAY HIGH COURT IN CIT VS. MANJARA SHETKARI SSK LTD. AND OTHERS (2008) 301 ITR 191 (BOM.), AGAINST WHICH THE REVENUE HAS COME UP IN APPEAL BEFORE THE TRIBU NAL. 23. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. IT IS SEEN THAT KHODKI CHARGES WERE INC URRED AS PER THE DIRECTIONS OF THE DIRECTOR OF SUGAR TO COMPENSATE FOR THE FARMERS LOSS FOR UNEVENLY CUTTING OF CANE SUGAR AT THE TIM E OF HARVESTING. THIS ISSUE CAME UP FOR CONSIDERATION BEFORE THE SPECIAL BENCH OF THE TRIBUNAL IN DCIT VS. MANJARA SHETKARI SSK LTD. (2004) 85 TTJ (MUM.)(SB) 369, WHICH GRANTED DEDUCTION FOR SAID EXPENSES. ON FURTHER APPEAL BY THE REVENUE TO THE HONBLE BOMBAY HIGH COURT, THEIR LORDSHIPS IN THE AFORENOTED CASE APPROVED THE VIEW TAKEN BY THE TRIBUNAL ALLOWING DEDUCTION FOR PAYMENT OF SUCH KHODKI CHARGES. THE LD. CIT(A) HAS RE CORDED SSK GROUP CASES 31 THAT THE SLP FILED BY THE DEPARTMENT IN THE CASE OF JADAMBA SSK LTD., ON SIMILAR ISSUE, HAS BEEN DISMISSED BY THE HONBLE SUPREME COURT ON 23-03-2009. IN VIEW OF THE FACT THAT KHODKI CHAR GES HAVE BEEN HELD AS DEDUCTIBLE BY THE HONBLE JURISDICTIONAL HIGH COURT AND THE RECENT JUDGMENT OF HONBLE SUPREME COURT IN TASGAON TALUKA SAHAKARI SAKHAR KARKHANA LTD. (SUPRA) DOES NOT COVER KHODKI CHARGES, WE HOLD THAT THIS ISSUE NEEDS TO BE DECIDED IN FAVOUR OF THE ASSESSEE. VIII. DEDUCTION U/S.80P ON INTEREST AND DIVIDEND 24. IN SOME OF THE APPEALS THE ISSUE OF DEDUCTION UND ER SECTION 80P OF THE ACT ON INTEREST AND DIVIDEND INCOME IS ALSO INVOLVED . THE ASSESSEE CLAIMED DEDUCTION U/S.80P(2)(D) OF THE ACT ON INTEREST AND DIVIDEND RECEIVED FROM CO-OPERATIVE SOCIETY ON SAVINGS BANK ACCOUNTS. THE AO DID NOT ALLOW SUCH DEDUCTION . THE LD. CIT(A) OVERTURNED THE ASSESSMENT ORDER ON THIS PO INT AND GRANTED DEDUCTION. THE REVENUE IS AGGRIEVED BY SUCH ALLOW ING OF DEDUCTION. 25. WE HAVE HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD. RELEVANT PART OF SECTION 80P READS AS UNDER : - 80P. (1) WHERE, IN THE CASE OF AN ASSESSEE BEING A CO-OPERATIVE SOCIETY, THE GROSS TOTAL INCOME INCLUDES ANY INCOME REFERRED TO IN SUB- SECTION (2), THERE SHALL BE DEDUCTED, IN ACCORDANCE WITH AND SUBJECT TO SSK GROUP CASES 32 THE PROVISIONS OF THIS SECTION, THE SUMS SPECIFIED IN SUB-SECTION (2), IN COMPUTING THE TOTAL INCOME OF THE ASSESSEE. (2) THE SUMS REFERRED TO IN SUB-SECTION (1) SHALL B E THE FOLLOWING, NAMELY : (A) TO (C) (D) IN RESPECT OF ANY INCOME BY WAY OF INTEREST OR DIVIDENDS DERIVED BY THE COOPERATIVE SOCIETY FROM ITS INVESTMENTS WITH A NY OTHER CO- OPERATIVE SOCIETY, THE WHOLE OF SUCH INCOME; ........ 26. A CURSORY LOOK OF THE ABOVE PROVISION DECIPHERS TH AT ANY AMOUNT OF INTEREST OR DIVIDEND DERIVED BY A CO-OPERATIVE SO CIETY FROM ITS INVESTMENTS WITH ANY OTHER CO-OPERATIVE SOCIETY, IS DEDUCTIBLE UNDER CLAUSE (D) OF SECTION 80P(2) OF THE ACT. THE LD. CIT(A) HAS GIVEN A CATEGORICAL FINDING THAT ASSESSEE IS A CO - OPERATIVE SOCIETY AND THE CO-OPERATIVE BANK FROM WHICH THE ABOVE-MENTIONED INCOME WAS EARNED, IS ALSO A CO-OPERATIVE SOCIETY DULY REGISTERED UNDER MAHARASHTRA COOPERATIVE SOCIETIES ACT. THIS CONTENTION HAS NOT BEEN CONTROVERTED BY THE LD. D R WITH ANY COGENT MATERIAL OR EVIDENCE. THUS, IT IS SEEN THAT THE CASE OF THE ASSESSEE IS FULLY COVERED U/S.80P(2)(D) OF THE ACT. R ELIANCE OF THE AO ON THE PROVISIONS OF SUB-SECTION (4) OF SECTION 80P IS MISPLACED. SUCH PROVISION STATES THAT : ` THE PROVISIONS OF THIS SECTION SHALL NOT APPLY IN RELATION TO ANY CO-OPERATIVE BANK OTHE R THAN A PRIMARY AGRICULTURAL CREDIT SOCIETY OR A PRIMARY CO-O PERATIVE AGRICULTURAL AND RURAL DEVELOPMENT BANK. AS THE ASSESSEE UNDER SSK GROUP CASES 33 CONSIDERATION IS NOT A CO-OPERATIVE BANK, THE MANDATE OF SUB - SECTION (4) DOES NOT EXTEND TO IT. WE, THEREFORE, APPROVE THE VIEW TAKEN BY THE LD. CIT(A) IN GRANTING DEDUCTION U/S.80P(2)(D) O F THE ACT IN RESPECT OF INTEREST AND DIVIDEND INCOME EARNED BY THE ASSESSEE ON SUCH FACTS. 27. IN THE RESULT, ALL THE APPEALS ARE FULLY/PARTLY ALLOWED F OR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH MARCH, 2019. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VI CE PRESIDENT PUNE; DATED : 14 TH MARCH, 2019 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A) CONCERNED 4. 5. 6. THE CIT CONCERNED , , / DR B, ITAT, PUNE; / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR P RIVATE SECRETARY , / ITAT, PUNE SSK GROUP CASES 34 DATE 1. DRAFT DICTATED ON 12-03-2019 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 14-03-2019 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *