Sahyadri Sahakari Sakhar Karkhana Limited, Satara V. Income-Tax Officer, Ward -1, Satara

ITA 737/PUN/2022

AI Insights

The case involves multiple appeals by Sahyadri Sahakari Sakhar Kharkhana Ltd. against orders from the National Faceless Appeal Centre (NFAC), Delhi, concerning various assessment years. The primary issues under dispute were the disallowance of sales of sugar at concessional rates to members and the disallowance of excessive sugarcane prices paid to members, which were deemed above the declared market price. The tribunal noted that these issues were not new and had been addressed in previous cases, leading to a decision to remand these matters back to the Assessing Officer for a fresh decision in accordance with the law.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137538 (ITAT-PUNE)
• Duration Of Justice: 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-01-2023
• Assessment Year: 2011-2012
• Appeal Filed On: 09-10-2022
• Other Referred Cases: Shrigonda Sahakari Sakhar Kharkhana Ltd. vs. DCIT, The Malegaon Sahakari Sakhar Karkhana Limited vs. ITO, Shree Chhatrapati SSK Ltd. vs. ITO
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA Nos.732 to 741/PUN/2022 निर्धारण वषा / Assessment Years : 2004-05, 2007-08 to 2011-12 & 2015-16 to 2018-19 Sahyadri Sahakari Sakhar Kharkhana Ltd., S.No.39, A/P Yashwantnagar, Tal. Karad, Dist. Satara- 415115 PAN: AAAAS4070K Vs. Dy.CIT, Satara Circle, Satara Appellant Respondent आदेश / ORDER PER BENCH: The instant batch of ten appeals pertains to a single assessee herein namely Sahyadri Sahakari Sakhar Kharkhana Ltd. These ten appeals ITA Nos.732/PUN/2022 to 741/PUN/2022 arise against the National Faceless Appeal Centre (NFAC), Delhi‟s separate orders; all dated 26-08-2022, passed in case Nos.ITBA/ NFAC/S/250/2022-23/1044956356(1), ITBA/NFAC/S/ 250/2022- Assessee by Shri M.K. Kulkarni, Sr.AR Revenue by S/Shri M.G. Jasnani and B. Koteswara Rao (CIT-DR) Date of hearing 13-01-2023 Date of pronouncement 20-01-2023 ITA Nos.732 to 741/PUN/2022 Sahyadri SSK Ltd. 2 23/1044938351(1), ITBA/NFAC/S/250/2022-23/1044937234(1), ITBA/NFAC/S/250/2022-23/1044925222(1), ITBA/NFAC/S/ 250/2022-23/1044904378(1), ITBA/NFAC/S/250/2022-23/ 1044905306(1), ITBA/NFAC/S/250/2022-23/1044847469(1), ITBA/NFAC/S/250/2022-23/1044847652(1), ITBA/NFAC/S/250/ 2022-23/1044847848(1) and ITBA/NFAC/S/250/2022-23/ 1044861742(1); assessment year wise, respectively, in proceedings under Section 143(3) of the Income Tax Act, 1961, in short „the Act‟. Heard both the parties. Case files perused. 2. It transpires during the course of hearing that all these appeals raise identical / inter-connected issues. We thus proceed to decide these issues assessment year-wise for the sake of convenience and brevity. 3. Coming to the “lead” assessment year 2004-05 involving assessee‟s appeal ITA No.732/PUN/2022, learned counsel submits at the outset that he does not wish to press for the latter substantive ground herein regarding the issue of area development fees ITA Nos.732 to 741/PUN/2022 Sahyadri SSK Ltd. 3 disallowance of Rs.12.17 lacs which already stands allowed in the CIT(A)‟s order. Rejected accordingly. 4. This leaves us with the assessee‟s former substantive ground challenging correctness of both the learned lower authorities action disallowing its sale of sugar at concessional rate to members involving Rs.2,91,53,216/-. It is noted that the same is no more res integra as this tribunal‟s coordinate bench‟s recent order in ITA No.1785/PUN/2018 in Shrigonda Sahakari Sakhar Kharkhana Ltd. vs. DCIT, order dated 29.07.2022 has directed the assessing authority concerned to decide it afresh as follows: “3. Mr. Jasnani vehemently supported the learned lower authorities action on assessee’s sale of sugar at concessional rate (both to members) disallowed in both the lower proceedings. He fails to dispute that the sugar at concessional rate is no more res integra as the tribunal’s various co-ordinate benches, and more particularly ITA No.68/PUN/2018 in The Malegaon Sahakari Sakhar Karkhana Limited vs. ITO’s order dated 21.40.2021 has set aside the concerned assessee’s substantive ground back to the assessing authority for its afresh appropriate adjudication as per law. Ordered accordingly.” 5. Both the parties are at ad idem during the course of hearing that the instant sole surviving issue involves identical factual as well as legal backdrop in the entire state of Maharashtra so far as sale of sugar by sugar co-operatives to their growers / members at ITA Nos.732 to 741/PUN/2022 Sahyadri SSK Ltd. 4 concessional rate(s) is concerned. Faced with the situation, we also deem it appropriate to restore this issue back to the file of Assessing Officer in very terms. Ordered accordingly. This first and foremost appeal ITA No.732/PUN/2022 treated as the „lead‟ case is partly accepted for statistical purposes. 6. The assessee‟s next appeal in ITA No.733/PUN/2022 for A.Y. 2007-08 raises yet another single issue of disallowance of excessive sugarcane price paid of Rs.11,39,69,371/- to its members which stands rejected by the learned lower authorities on the ground that the same is more than the declared market price. Both the learned representatives are fair enough in stating before us that this tribunal coordinate bench‟s recent decision in ITA Nos.313 to 316/PUN/2019 in Shree Chhatrapati SSK Ltd. vs. ITO, order dated 28.07.2022 has directed the assessing authority concerned to decide it afresh as follows: “3. Mr. Jasanani vehemently supported the learned lower authorities action on both counts i.e. assessee’s payment of excess cane price and sale of sugar at concessional rate (both to members) disallowed in both the lower proceedings. He fails to dispute that the former twin issues of excess cane price payment as well as sugar at concessional rate are no more res integra as the tribunal’s various co-ordinate benches, and more particularly ITA No.68/PUN/2018 in ITA Nos.732 to 741/PUN/2022 Sahyadri SSK Ltd. 5 The Malegaon Sahakari Sakhar Karkhana Limited vs. ITO’s order dated 21.40.2021 has set aside the concerned assessee’s substantive grounds back to the assessing authority for its afresh appropriate adjudication as per law. Ordered accordingly.” 7. The instant appeal ITA No.733/PUN/2022 is allowed for statistical purposes in above terms. 8. The assessee‟s remaining eight appeals ITA Nos.734 to 741/PUN/2022 the twin issues are found to have been involved in ITA Nos.735/PUN/2022 for A.Y. 2009-10, 736/PUN/2022 for A.Y. 2010-11, 737/PUN/2022 for A.Y. 2011-12 and the latter four appeals ITA Nos.738/PUN/2022 to 741/PUN/2022 for A.Ys. 2015- 16 to 2018-19 canvass its sole substantive grievance of disallowance pertaining to sale of sugar to members at concessional rates, involving varying sum(s), respectively. All these substantive grounds are also restored back to the file of the Assessing Officer for his afresh adjudication in very terms. Ordered accordingly. No other ground or argument has been pressed before us. 9. To sum up, the assessee‟s first and foremost appeal ITA No.732/PUN/2022 is partly allowed for statistical purposes, ITA Nos.732 to 741/PUN/2022 Sahyadri SSK Ltd. 6 whereas the latter nine appeals ITA Nos.733 to 741/PUN/2022 are allowed for statistical purposes in above terms. A copy of this common order be placed in the respective case files. Order pronounced in the Open Court on 20 th January, 2023. Sd/- Sd/- (DIPAK P. RIPOTE) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER प ु णे Pune; ददिधांक Dated : 20 th January, 2023 GCVSR आदेश की प्रतिलिपि अग्रेपिि/Copy of the Order is forwarded to: 1. अपीऱधर्थी / The Appellant; 2. प्रत्यर्थी / The Respondent; 3. The concerned CIT(A), Pune 4. 5. The concerned Pr.CIT, Pune विभागीय प्रविविवि, आयकर अपीलीय अविकरण, पुणे “B” / DR „B‟, ITAT, Pune 6. गार्ड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune ITA Nos.732 to 741/PUN/2022 Sahyadri SSK Ltd. 7 Date 1. Draft dictated on 16-01-2023 Sr.PS 2. Draft placed before author 17-01-2023 Sr.PS 3. Draft proposed & placed before the second member JM 4. Draft discussed/approved by Second Member. JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.