Shri Vitthal SSK Ltd., Solapur V. The Deputy Commissioner of Income Tax Circle-1, Solapur

ITA 579/PUN/2023

AI Insights

The case involves Shri Vitthal SSK Ltd., a cooperative society engaged in running a sugarcane factory, appealing against the order of the NFAC which pertained to the assessment year 2009-10. The initial assessment by the Deputy Commissioner of Income Tax, Circle-1, Solapur, resulted in a total income assessment significantly higher than the income reported by the appellant, after disallowances related to cane purchase prices, concessional sugar sales, and VSI contributions. The NFAC deleted the disallowance related to cane purchase prices but upheld the other additions without substantial discussion. The Tribunal found the NFAC's handling of the appeal to be inadequate and set aside the order for a fresh examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137482 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-07-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 11-06-2023
• Assessment Year: 2009-2010
• Appeal Filed On: 14-05-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 143(3); 37(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S. S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.579/PUN/2023 िनधाᭅरण वषᭅ / Assessment Year : 2009-10 Shri Vitthal SSK Ltd., A/p. Gurusale, Tal. Pandarpur, Dist. Solapur- 413304. PAN : AAAAS3892H Vs. DCIT, Circle-1, Solapur. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 14.03.2023 for the assessment year 2009-10. 2. Briefly, the facts of the case are that the appellant is a Co- operative Society engaged in the business of running of sugarcane Assessee by : None Revenue by : Shri M. G. Jasnani Date of hearing : 12.06.2023 Date of pronouncement : 04.07.2023 ITA No.579/PUN/2023 2 factory. The Return of Income for the assessment year 2009-10 was filed on 29.09.2009 and the same was revised on 08.06.2010 at Rs.Nil income after claiming set off of the brought forward losses. Against the said return of income, the assessment was completed by the Dy. Commissioner of Income Tax, Circle-1, Solapur (‘the Assessing Officer’) vide order dated 16.12.2011 passed u/s 143(3) of the Income Tax Act, 1961 (‘the Act’) at a total income of Rs.115,62,56,550/-. While doing so, the Assessing Officer made following disallowances :- 01 Disallowance u/s 37(1) excessive and unreasonable cane purchase price paid for purchase of Sugarcane 114,74,95,731/- 02 Addition on account of Sale of Sugar at concessional rate 69,86,180/- 03 VSI contribution 17,74,638/- 3. Being aggrieved by the above disallowances, an appeal was filed before the NFAC, who vide impugned order deleted the addition on account of excess and unreasonable sugarcane purchase price of Rs.114,74,95,731/- relying on the Budget Speech of Hon’ble Finance Minister. ITA No.579/PUN/2023 3 As regards to the balance additions on account of sale of sugar at concessional rate and VSI contribution, the ld. CIT(A) without discussing the facts and applicable law merely confirmed the additions by holding that substantially relief was granted in respect of excessive and unreasonable sugarcane purchase price. 4. Being aggrieved, the appellant is in appeal before us in the present appeal. 5. When the appeal was called on, none appeared on behalf of the assessee despite due service of notice of hearing. Therefore, we proceed to decide the issue on merits considering the material on record and after hearing the ld. Sr. DR. 6. We heard the ld. Sr. DR and perused the material on record. We highly depreciable the approach adopted by the NFAC merely because he granted relief in respect of one item of additions, does not mean that he can deny the justice in respect of balance additions/grounds of appeal raised before him. The approach adopted by the NFAC is illegal and unreasonable and cannot be sustained in the eyes of law. Therefore, the order of the NFAC is ITA No.579/PUN/2023 4 set-aside for de novo adjudication of the issues in appeal afresh after affording a reasonable opportunity of being heard to the assessee. 7. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 04 th day of July, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 04 th July, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 5. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.