ACIT, Circle-1, Solapur V. Shree Adinath SSK Ltd., Solapur

ITA 37/PUN/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 76156 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-02-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 03-01-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S P WALIMBE
• Assessee Lawyers: SHUBHADA A KOPPA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE: SHRI R.S. PADVEKAR, JUDICIAL MEMBER AND SHRI R.K. PANDA, ACCOUNTANT MEMBER ITA NO. 3 7 /PN/20 1 3 ASSESSMENT YEAR : 200 9 - 10 THE ASSTT. COMMISSIONER OF INCOME TA X, CIRCLE - 1, SOLAPUR VS. SHREE ADINATH SAHAKARI SAKHAR KARKHANA LIMITED, A/P - SHELGAON BHALVANI, TAL - KARMALA, DISTRICT - SOLAPUR (APPELLANT) (RESPONDENT) PAN NO. AAAA S 4167M APPELLANT BY: SHRI S.P. WALIMBE RESPONDENT BY: SHRI SHUBHADA A. KOPPA DA TE OF HEARING : 03 - 02 - 2014 DATE OF PRONOUNCEMENT : 21 - 0 2 - 2014 ORDER P ER R.S. PADVEKAR , JM : - IN THIS APPEAL , THE REVENUE HAS CHALLENGED T HE IMPUGNED ORDER OF THE LD. CIT(A) - III, PUNE DATED 31 - 08 - 2012 FOR THE A.Y. 200 9 - 10. THE REVENUE HAS TAKEN THE FOLLOWING GROUNDS IN THE APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF SALE OF SUGAR AT CONCESSIONAL RATE AT RS. 19,72,174/ - TO ITS MEMBERS AND NON MEMBERS. 2 THE ORDER OF THE CIT(A) BE VACATED AND THAT OF THE AO BE RESTORED. 2. WE HAVE HEARD THE PARTIES. THE ISSUE IN THIS CASE IS WHETHER THE CIT(A) JUSTIFIED IN DELETING THE ADDITION MADE ON ACCOUNT OF SALE OF SUGAR AT CONCESSIONAL RATE TO TH E MEMBERS. WE FIND THAT THE IDENTICAL ISSUE HAS COME BEFORE THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. KRISHNA SSK LTD. AND OTHERS IN CIVIL APPEAL NO. 6950 OF 2012 ETC. 2 ITA NO. 3 7 /PN/2013, SHREE ADINATH SAHAKRARI SAKHAR KARKHANA LIMITED, SOLAPUR JUDGMENT DATED 25 - 09 - 2012 AND THE HON'BLE SUPREME COURT REMITTED THE MATTER BACK TO THE FILE OF THE CIT(A) FOR FRESH RE - CONSIDERATION BY GIVING THE FOLLOWING DIRECTIONS: THE QUESTION, WHETHER THE ABOVE DIFFERENCE BETWEEN THE FAIR MARKET PRICE AND THE CONCESSIONAL PRICE SHOULD OR SHOULD NSOT BE ADDED TO THE TOTAL INCOME OF THE ASSES SEE SOCIETY, NEEDS TO BE RE - LOOKED BY CIT(A). APART FROM THE AFORESAID QUESTION, CIT(A) WOULD TAKE INTO ACCOUNT, WHETHER THE ABOVE MENTIONED PRACTICE OF SELLING SUGAR AT CONCESSIONAL RATE HAS BECOME THE PRACTICE OR CUSTOM IN THE IN THE CO - 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 OF FARMERS/CANE GROWERS/MEMBERS EACH YEAR ON MONTH TO - MONTH BASIS, APART FROM DIWALI? THERE ARE SOME OF THE QUESTIONS WHICH HAVE NOT BEEN ADDRESSED BY THE AUTHORITIES BELOW IN THE IMPUGNED ORDERS. THE CIT(A) WOULD BE ENTITLED TO LOOK INTO THE ACCOUNTS AND VERIFY THE BASIS FOR SALE OF SUGAR AT CONCESSIONAL PRICE ON MONTH - TO - MONTH BASIS WE THEREFORE, KEEP ALL QUESTIONS OF LAW AND FACTS OPEN. NEEDLESS TO ADD, THE CIT(A) WOULD GIVE LIBERTY TO BOTH THE SIDES TO PRODUCE RELEVANT DOCUMENTS. FOR THE ABOVE REASONS, WE REMIT THE CASES TO CIT(A) TO DE - NOVO CONSIDER THE MATTER. 3. IN THE PRESENT CASE ALSO THE RELEVANT FACTS ARE NOT ON RECORD AS IN THE CASE OF KRISHNA SSK LTD. AND OTHERS (SUPRA). WE, THEREFORE, RESPECTFULLY FOLLOWING THE JUDGMENT OF THE HON'BLE SUPREME COURT IN THE CASE OF KRISHNA SSK LTD. AND OTHERS (SUPRA) RESTORE THE ISSUE TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION IN THE LIGHT OF ABOVE DIRECTIONS GIVEN BY THE HON'BLE SUPREME COURT IN THE CASE OF KRISHNA SSK LTD. AND OTHERS (SUPRA). ACCORDINGLY, THE GROUNDS TAKEN BY THE R EVENUE ARE ALLOWED FOR THE STATISTICAL PURPOSES. 3 ITA NO. 3 7 /PN/2013, SHREE ADINATH SAHAKRARI SAKHAR KARKHANA LIMITED, SOLAPUR 4. IN THE RESULT, THE REVENUES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 21 - 0 2 - 201 4 SD/ - SD/ - ( R.K. PANDA ) ( R.S. PADVEKAR ) ACCOUNTANT MEMBER JUDICIAL M EMBER RK /PS PUNE , DATED : 21 ST FEBRUARY, 2014 COPY TO 1 ASSESSEE 2 DEPARTMENT 3 THE CIT(A) - III, PUNE 4 THE CIT - III, PUNE 5 THE DR, ITAT, B BENCH, PUNE . 6 GUARD FILE. //TRUE COPY// BY ORDER PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL PUNE