Dy. CIT, Pune V. Baramati taluka Sah. Dudh Utpadak Sangh Ltd., Pune

ITA 335/PUN/2012

• Counselvise Citation: 33524514 RSA 2012
• Duration Of Justice: 1 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-12-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 04-12-2013
• Assessment Year: 1994-1995
• Appeal Filed On: 17-02-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P L PATHADE
• Keywords: Business expenditure; Question of law

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI G.S.PANNU, ACCOUNTANT MEMBER ITA NOS.335 & 336/PN/2012 (A.YS.1994-95 & 1995-96) DY. CIT, SPL. RANGE-3, PUNE APPELLANT VS. BARAMATI TALUKA SAHKARI DUDH UTPADAK SANGH LTD., TAL. BARAMATI, DIST. PUNE-413102 RESPONDENT APPELLANT BY : SHRI P.L. P ATHADE RESPONDENT BY : SHRI PRAMO D SHINGTE DATE OF HEARING : 04.12.2013 DATE OF ORDER : 24.12.2013 ORDER PER SHAILENDRA KUMAR YADAV, J.M: BOTH THESE APPEALS PERTAINS TO THE SAME ASSESSEE F OR TWO ASSESSMENT YEARS. SO THESE WERE HEARD TOGETHER AND ARE BEING DISPOSED OFF BY THIS COMMON ORDER FOR THE SAKE OF C ONVENIENCE. 2. IN ITA NO.335/PN/2012 FOR 1994-95, THE REVENUE H AS RAISED THE FOLLOWING GROUNDS: 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEA RNED COMMISSIONER OF INCOME-TAX (APPEALS) GROSSLY ERRED IN HOLDING THAT THE PAYMENT MADE BY THE ASSESSEE TO TH E MEMBER OF COOPERATIVE SOCIETIES OVER AND ABOVE THE AGREED PURCHASE PRICE OF MILK, IS NOT APPLICATION OF INCOM E. 2 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEA RNED COMMISSIONER OF INCOME-TAX (APPEALS) GROSSLY ERRED IN HOLDING THAT THE ASSESSEE IS ENTITLED TO DEDUCTION OF THE AMOUNT PAID OVER AND ABOVE THE AGREED PURCHASE PRIC E OF MILK FROM ITS INCOME. 3. FOR THIS AND SUCH OTHER REASONS AS MAY BE URGED AT THE TIME OF HEARING, THE ORDER OF THE LD. COMMISSIONER OF IN COME-TAX (APPEALS) MAY BE VACATED AND THAT OF THE ASSESSING OFFICER BE RESTORED. 4. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALTER OR DELETE ANY OF THE ABOVE GROUNDS OF APPEAL DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE THE HON'BLE TRIBUNAL. 3. THE ASSESSEE IS A COOPERATIVE SOCIETY MAINLY ENG AGED IN THE BUSINESS OF COLLECTION OF MILK FROM PRIMARY SOCIETI ES AND ITS SUPPLY TO GOVERNMENT DAIRY. IN ADDITION TO THIS MAIN ACTIVIT Y, THE ASSESSEE WAS ALSO INVOLVED DURING THESE YEARS IN THE MANUFAC TURING AND SALE OF ANIMAL FEED, VETERINARY MEDICINE, DAIRY EQUIPMEN T AND ALSO IN THE RUNNING OF MANGAL KARYALAYA. 4. REVENUES APPEAL IS PERTAINING TO ADDITION FOR D OODH DAR FARAK OF RS.42,70,503/- PAID TO DIFFERENT PRIMARY SOCIETI ES FROM WHOM MILK WAS PURCHASED AS ADDITIONAL PAYMENT SUBSEQUENT TO THE END OF THE YEAR OUT OF THE EXCESS MONEY RECEIVED FROM THE GOVE RNMENT DAIRY. THE ASSESSING OFFICER HELD THAT THE SAID PAYMENT WA S OF NATURE OF BONUS OR APPLICATION OF MONEY OUT OF THE PROFIT EAR NED TO THE MEMBERS AND THEREFORE, IT WAS HELD TO BE NOT ALLOWA BLE AS BUSINESS EXPENDITURE. IN APPEAL, CIT(A) ALLOWED THE SAME ON FOLLOWING THE DECISION OF ITAT FOR A.Y. 1993-94. BEFORE US, IT W AS POINTED OUT THAT THE ORDER OF ITAT HAS BEEN UPHELD BY ORDER OF HONB LE HIGH COURT IN TAX APPEAL (L) NO.1457 OF 2008 BY OBSERVING AS UNDE R: 2. LEARNED COUNSEL FOR APPELLANT FAIRLY STATES TH AT THE ISSUE SOUGHT TO BE RAISED IN THIS APPEAL IS SQUARELY COVE RED BY THE JUDGMENT OF THIS COURT DECIDED ON 18 TH MARCH, 2009 IN INCOME TAX APPEAL NO.997 OF 2008 IN CIT VS. SOLAPUR DISTRI CT COOP., MILK PRODUCERS AND PROCESS UNION LTD., (2009) 315 I TR 304 (BOM). IN THIS VIEW OF THE MATTER, THE APPEAL IS D ISMISSED FOR WANT OF SUBSTANTIAL QUESTION OF LAW. NO ORDER AS T O COSTS. 3 NOTHING CONTRARY WAS BROUGHT TO OUR KNOWLEDGE. FA CTS BEING SIMILAR, SO FOLLOWING THE SAME REASONING, WE ARE NO T INCLINED TO INTERFERE WITH THE FINDINGS OF CIT(A) WHO HAS ALLOW ED THE ABOVE EXPENDITURE AS ALLOWABLE AS BUSINESS EXPENDITURE. SAME IS UPHELD. SIMILAR ISSUE AROSE IN ITA NO.336/PN/2012 FOR A.Y. 1995-96. FACTS BEING SIMILAR, SO FOLLOWING THE SAME REASONING, WE ARE NOT INCLINED TO INTERFERE WITH THE FINDINGS OF CIT(A) AND THE ORDER OF CIT(A) IS UPHELD. 5. IN THE RESULT, BOTH THE APPEALS OF REVENUE ARE D ISMISSED. PRONOUNCED IN THE OPEN COURT ON THE DAY OF 24 TH DECEMBER 2013. SD/- SD/- (G.S. PANNU) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED: 24 TH DECEMBER, 2013 GCVSR COPY TO:- 1. DEPARTMENT 2. ASSESSEE 3. THE CIT(A)-I, PUNE 4. THE CIT-I, PUNE 5. THE DR, A BENCH, I.T.A.T., PUNE. 6. GUARD FILE BY ORDER //TRUE COPY// SENIOR PRIVATE SECRETARY, I.T.A.T., PUNE