DCIT, CHENNAI V. The Tirupattur Co-op Sugar Mills Ltd., Kethandapatti

ITA 453/CHNY/1998

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2500 (ITAT-CHENNAI)
• Duration Of Justice: 15 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 06-05-2013
• Assessment Year: 1993-1994
• Appeal Filed On: 25-03-1998
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T N BETGERI
• Assessee Lawyers: S SRIDHAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH CHENN AI BEFORE DR.O.K.NARAYANAN, VICE PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER .. ITA NO.453/MDS./1998 ASSESSMENT YEAR: 1993-94 THE DEPUTY COMMISSIONER OF INCOME-TAX, SPECIAL RANGE-V, CHENNAI. VS. THE TIRUPATTUR CO-OPERATIVE SUGAR MILLS LTD., KETHANDAPATTI, NORTH ARCOT DISTRICT. G I /P.A NO.607-T (APPELLANT) (RESPONDENT) DEPARTMENT BY : SHRI T.N.BETGERI JCIT D.R. ASSESSEE BY : SHRI S.SRIDHAR, ADVOCATE DATE OF HEARING : 06.05.13 DATE OF PRONOUNCEMENT : 06. 05.13 O R D E R PER VIKAS AWASTHY JUDICIAL MEMBER : THE PRESENT APPEAL HAS BEEN REMANDED BACK TO THE TRIBUNAL BY THE HONBLE MADRAS HIGH COURT VIDE ORDE R DATED ITA. 453 /MDS/98 2 10.10.2011. THE HONBLE HIGH COURT HAS SET ASIDE T HE ORDER OF THE TRIBUNAL DATED 14.07.2004 AND HAS DIRECTED THE TRIBUNAL TO RECONSIDER THE CASE IN THE LIGHT OF THE DECISION OF THE HONBLE SUPREME COURT OF INDIA IN THE CASE OF PONNI SUGARS AND CHEMICALS LTD. REPORTED IN [2008] 306 ITR 392. 2. THE ASSESSEE IS A CO-OPERATIVE SUGAR MILL ENGAG ED IN MANUFACTURING AND SALE OF SUGAR. THE ASSESSEE IS AL SO PROVIDING CREDIT FACILITIES AND IS SUPPLYING HIGH QUALITY SUG ARCANE SEEDS, FERTILIZERS AND PESTICIDES TO ITS MEMBERS. FOR ASS ESSMENT YEAR 1994-95, THE ASSESSEE FILED ITS RETURN OF INCOME CL AIMING DEDUCTION UNDER THE PROVISIONS OF SECTION 80 P (2) (A)(IV). THE ASSESSING OFFICER VIDE ORDER DATED 06.12.1996 INTER-ALIA REJECTED THE CLAIM OF ASSESSEE ON THE GROUND THAT THE MAIN O BJECT OF ASSESSEE IS ONLY MANUFACTURE AND SALE OF SUGAR, WHE REAS PROVISIONS OF SEC.80 P (2)(A)(IV) ARE APPLICABLE ON LY TO A CO-OPERATIVE SOCIETY ENGAGED IN THE BUSINESS OF BAN KING. AGGRIEVED AGAINST THE ASSESSMENT ORDER, THE ASSESS EE PREFERRED AN APPEAL BEFORE THE CIT(A). THE CIT(A) VIDE ORDER DATED 29.01.1998 RELIED ON SOME DECISIONS OF THE TRIBUNAL AND ALLOWED THE APPEAL OF THE ASSESSEE. ITA. 453 /MDS/98 3 AGGRIEVED AGAINST THE ORDER OF THE CIT(A), THE RE VENUE PREFERRED A SECOND APPEAL BEFORE THE TRIBUNAL. THE TRIBUNAL IN ITS ORDER DATED 14.07.2004 HELD: THE ASSESSEE CO-OPERATIVE SOCIETY IS FORMED BY THE MEMBERS AND IN ADDITION TO ITS ACTIVITIES, FOR MUTU AL SUPPORT OF THE MEMBERS AND FOR THEIR BENEFIT ADVANCES ARE G IVEN AND THESE ARE TREATED AS CREDIT FACILITIES. THIS BE ING AN INTEGRAL PART OF THE ACTIVITIES OF THE ASSESSEE-COO PERATIVE SOCIETY, WE UPHOLD THE CLAIM OF THE ASSESSEE. THE HONBLE JURISDICTIONAL HIGH COURT SET ASIDE THE ABOVE FINDINGS OF THE TRIBUNAL VIDE ORDER DATED 10.10.201 1 AND REMANDED THE FILE BACK TO TRIBUNAL FOR DECIDING AFR ESH IN THE LIGHT OF DECISION OF HONBLE APEX COURT IN THE CASE OF PO NNI SUGARS AND CHEMICALS LTD.(SUPRA). 3. WE FIND, THAT THE COMPLETE FACTS ON THE ISSUE A RE NOT AVAILABLE BEFORE US. THE CIT(A) HAS ALLOWED THE CL AIM OF THE ASSESSEE ON THE BASIS OF SOME EARLIER DECISION OF T HE TRIBUNAL. HOWEVER, NO CITATION OR CASE LAW RELIED UPON BY THE CIT(A) HAS BEEN MENTIONED IN THE ORDER. WE THEREFORE, REMIT T HE FILE BACK TO THE ASSESSING OFFICER TO DECIDE IT AFRESH IN ACCORD ANCE WITH ITA. 453 /MDS/98 4 DIRECTIONS OF THE HONBLE JURISDICTIONAL HIGH COURT . ORDERED ACCORDINGLY. 4. IN THE RESULT, THE APPEAL OF REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 6 TH MAY, 2013. SD/- SD/- (DR.O.K.NARAYANAN) (VIKAS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER CHENNAI, DATED THE 6 TH MAY, 2013. K S SUNDARAM COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE ITA. 453 /MDS/98 5