Datta Shetkari Sahakari Sakhar Karkhana Ltd, Kolhapur V. Assistant Commissioner of Income-tax, Ichalkaranji Circle, Ichalkaranji

ITA 507/PUN/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9649 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 20-03-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MAHADEVAN A.M. KRISHNAN
• Keywords: Set aside

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI INTURI RAMA RAO, AM AND SHRI S. S. VISWANETHRA RAVI, JM ITA NO.507/PUN/2018 / ASSESSMENT YEAR : 2015-16 SHRI DATTA SHETKARI SAHAKARI SAKHAR KARKHANA LIMITED, A/P DATTA NAGAR, TAL. SHIROL, KOLHAPUR 416120. PAN : AAAAS0597B. . / APPELLANT V/S THE ASST. COMMISSIONER OF INCOME TAX, ICHALKARANJI CIRCLE, ICHALKARANJI. . / RESPONDENT ASSESSEE BY : NONE. REVENUE BY : SHRI MAHADEVAN A.M. KRISHNAN. / DATE OF HEARING : 27.07.2021 / DATE OF PRONOUNCEMENT : 27.07.2021 / ORDER PER INTURI RAMA RAO, AM: THIS IS AN APPEAL FILED BY THE ASSESSEE CO-OPERATIVE SOCIE TY DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) 2, KOLHAPUR DATED 11.12.2017 FOR THE ASSESSMENT YEAR 2015-16. 2 2. THE BRIEF FACTS OF THE CASE ARE AS UNDER : THE APPELLANT IS A CO-OPERATIVE SOCIETY REGISTERED UNDER THE MAHARASHTRA CO-OPERATIVE SOCIETY ACT, 1950. IT IS ENGA GED INTO THE BUSINESS OF MANUFACTURE AND SALE OF SUGAR AND ITS BY-PRODUCTS. T HE RETURN OF INCOME FOR A.Y. 2015-16 WAS FILED ON 27.09.2015. AGAINST THE SAID R ETURN OF INCOME, THE ASSESSMENT WAS COMPLETED BY THE ASST. COMMISSIONER OF INCOME TAX, ICHALKARANJI CIRCLE, ICHALKARANJI (HEREINAFTER CALLED AS ASSES SING OFFICER) VIDE ORDER DATED 19.05.2017 PASSED UNDER SEC.143(3) OF THE ACT AT A TOTAL INCOME OF RS.1,77,83,490/-. WHILE DOING SO, THE ASSESSING OFFICER MA DE AN ADDITION OF RS.4,86,83,556/- ON ACCOUNT OF SALE OF SUGAR AT CONCESS IONAL RATE TO MEMBERS OF CO-OPERATIVE SOCIETY. 3. BEING AGGRIEVED BY THE ABOVE ADDITION, APPELLANT SOCIETY HAS FILED AN APPEAL BEFORE THE LD.CIT(A) CHALLENGING THE ADDITION ON ACCOU NT OF SALE OF SUGAR AT CONCESSIONAL RATE TO ITS MEMBERS. 4. THE LD.CIT(A) AFTER REFERRING TO THE DECISION OF THE HONBLE SUPREME COURT IN THE CASE OF CIT, BOMBAY VS. KRISHNA SAHAKARI SAK HAR KARKHANA LTD., REPORTED IN 211 TAXMANN.COM 109 (SC) ADDRESSED THE QUESTIONS RAISED BY THE HONBLE SUPREME COURT, SET ASIDE THE ISSUE TO T HE FILE OF ASSESSING OFFICER WITH THE FOLLOWING DIRECTIONS : 5.1.. A) THE AO WILL DETERMINE THE QUANTITY OF SUGAR SOLD AT CONCESSIONAL RATE TO MEMBERS AND RESTRICT IT TO A MAXIMUM OF 5 KGS PER M ONTH PER MEMBER / EMPLOYEE. B) THE SALE PRICE OF THIS CONCESSIONAL SALE IS TO B E HELD AT THE LEVY PRICE FOR THE A.Y. 3 C) THE DIFFERENCE BETWEEN THE CONCESSIONAL SALE PRI CE ACTUALLY CHARGED FROM THE MEMBERS AND THE LEVY PRICE FOR THE LIMIT OF 5 KGS P ER MONTH PER MEMBER / EMPLOYEE IS TO BE TAXED IN THE HANDS OF THE APPELLA NT. D) FOR THE QUANTITY OF SUGAR SOLD BEYOND 5 KGS PER MONTH PER MEMBER / EMPLOYEE AT CONCESSIONAL RATE, THE DIFFERENCE BETWE EN THE MARKET PRICE AND THE CONCESSIONAL PRICE HAS TO BE ADDED AS THE INCOME OF THE APPELLANT. 5. WHEN THE APPEAL WAS CALLED ON, NONE APPEARED ON BEHALF OF THE ASSESSEE. 6. WE HEARD THE LEARNED SR.D.R. AND AFTER HEARING THE LD.S R.D.R., WE PROCEED TO DISPOSE OF THE SAME. 7. THE ISSUE IN APPEAL RELATES TO THE ADDITION ON ACCOUNT OF SALE OF SUGAR AT CONCESSIONAL RATE TO ITS MEMBERS. THIS ISSUE REQUIRES TO BE A DJUDICATED ON THE TOUCHSTONE OF LAW LAID DOWN BY THE HONBLE SUPREME C OURT IN THE CASE OF CIT VS. KRISHNA SAHAKARI SAKHAR KARKHANA LTD. (SUPRA). T HE LD.CIT(A) REFERRING TO THE QUESTIONS RAISED BY THE HON'BLE SUPREME COURT IN THE SAID CASE CITED, HAS DIRECTED THE ASSESSING OFFICER TO COMPUTE THE ADDITION TO INCOME AS PER THE DIRECTIONS MENTIONED AT PARA 5.1 OF HIS ORDER. THE LD.CIT(A) HAS NO POWER TO SET ASIDE THE ISSUE TO THE FILE OF ASSESSING OFFICER. HOWEVER, THE POWER OF SET ASIDE CAN BE EXERCISED BY THE TRIBUNAL. THEREFORE, WE REMIT THE GROUNDS OF APPEALS TO THE ASSESSING OFFICER TO EXAMINE THE ALLOWABILITY OF THE SALE OF SUGAR AT CONCESSIONAL RATE TO ITS MEMBERS ON THE TOUCHSTONE OF LAW LAID DOWN BY THE HON'BLE SUPREME COUR T IN THE CASE OF CIT VS. KRISHNA SAHAKARI SAKHAR KARKHANA LTD. (SUPRA). AC CORDINGLY, THE APPEAL OF ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 4 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PAR TLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 27 TH DAY OF JULY, 2021. SD/- SD/- (S. S. VISWANETHRA RAVI) (IN TURI RAMA RAO) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / PUNE; / DATED : 27 TH JULY, 2021. YAMINI / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A)-2, KOLHAPUR. 4. THE PR.CIT-2, KOLHAPUR. 5. , , , / DR, ITAT, B BENCH, PUNE. 6. / GUARD FILE. / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE.