Assistant Commissioner of Income-tax, Circle - 14, Pune V. M/s. Baramati Taluka Sahakari Dudh Utpadak Sangh Ltd, Pune

ITA 847/PUN/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1028 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 10-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALOK MALVIYA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE VIRTUAL COURT BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER ITA NOS. 2541/PUN/2017 & 847/PUN/2018 / ASSESSMENT YEARS : 2014-15 & 2015-16 DCIT, CIRCLE-14, PUNE/ ACIT, CIRCLE-14, PUNE VS. M/S. BARAMATI TALUKA SAHAKARI DUDH UTPADAK SANGH LTD., BARAMATI, PUNE 413102 PAN : AACAT1943N APPELLANT RESPONDENT / ORDER PER BENCH : THESE TWO APPEALS BY THE REVENUE ARE DIRECTED AGAINST TH E SEPARATE ORDERS DATED 31-08-2017 & 05-02-2018 PASSED BY THE CIT(A)-7, PUNE IN RELATION TO THE ASSESSMENT YEARS 2014-15 & 2015-16. WE ARE DISPOSING THEM OFF BY THIS CONSOLIDATED OR DER FOR THE SAKE OF CONVENIENCE AS A COMMON ISSUE IS RAISED. ASSESSEE BY SHRI PRAMOD SHINGTE REVENUE BY SHRI ALOK MALVIYA DATE OF HEARING 04-06-2020 DATE OF PRONOUNCEMENT 05-06-2020 ITA NOS.2541/PUN/2017 & 847/PUN/2018 M/S. BARAMATI TALUKA SAHAKARI DUDH UTPADAK SANGH LTD., 2 A.Y. 2014-15 : 2. THE ONLY ISSUE RAISED BY THE REVENUE IN ITS APPEAL IS AG AINST THE DELETION OF ADDITION OF RS.2.39 CRORE MADE BY THE ASSES SING OFFICER (AO) ON ACCOUNT OF PAYMENT OF MILK RATE DIFFERENCE . 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT THE ASSESS EE IS A COOPERATIVE SOCIETY DEALING IN MILK. IT DEBITED A SUM OF RS.12 3.06 CRORE ON ACCOUNT OF PURCHASE OF MILK TO VARIOUS PRIMAR Y MILK SOCIETIES. THIS AMOUNT INCLUDED A SUM OF RS.2,39,78,032/- , BEING THE MILK RATE DIFFERENCE PAYABLE TO PRIMARY SOCIETIES. THE A SSESSEE MADE PROVISION FOR THE SAME ON THE BASIS OF RESOLUTION PASS ED BY THE BOARD. ON BEING CALLED UPON TO EXPLAIN, IT WAS STATED THAT THE PROVISION WAS MADE FOR THIS SUM @ 0.40 PAISE PER LITRE AS P ER BOARD RESOLUTION DATED 11-03-2014. IN SUPPORT OF THE DE DUCTION, IT WAS SUBMITTED THAT THE PRIMARY MILK SOCIETIES DEMANDED HIGHER RATE THAN THE RATE FIXED BY THE GOVERNMENT FOR PURCHASE OF MILK. EVENTUALLY, THE BOARD OF THE ASSESSEE AGREED TO INCREASE THE RATE BY 0.40 PAISE FOR WHICH A PROVISION WAS MADE THAT WAS ALSO D ISBURSED IN THE SUBSEQUENT YEAR. NOT CONVINCED, THE AO MADE ADDITION OF RS.2.39 CRORE WHICH WAS DELETED BY THE LD. CIT(A) BY FOLLO WING ITA NOS.2541/PUN/2017 & 847/PUN/2018 M/S. BARAMATI TALUKA SAHAKARI DUDH UTPADAK SANGH LTD., 3 SEVERAL ORDERS PASSED BY THE TRIBUNAL IN THE ASSESSEES O WN CASE, WHICH STOOD CONFIRMED BY THE HONBLE HIGH COURT AS WELL. TH E REVENUE IS AGGRIEVED BY THE DELETION OF SUCH AN ADDITION. 4. HAVING HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVA NT MATERIAL ON RECORD, IT IS FOUND AS AN ADMITTED POSITION THAT SI MILAR ISSUE CAME UP FOR CONSIDERATION BEFORE THE TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE A.YRS. 1993-94, 96-97, 9 7-98, 99-00, 00-01 AND 02-03, WHICH WAS DECIDED IN ITS FAVOUR. THERE AFTER, THE REVENUE MOVED THE HONBLE BOMBAY HIGH COURT, BUT WITHOUT SUCCESS. A COPY OF THE JUDGMENT OF THE HONBLE BOMBAY HIGH COURT HAS BEEN PLACED ON RECORD DECIDING IDENTICAL ISSUE IN F AVOUR OF THE ASSESSEE. THE CASE OF THE REVENUE IS THAT SLP IS STILL PENDING. AS THE ISSUE IN QUESTION HAS BEEN SETTLED IN FAVOUR OF THE ASSESSEE BY THE HONBLE BOMBAY HIGH COURT IN ASSESSEES OWN CASE, RESPECTFULLY FOLLOWING THE PRECEDENT, WE UPHOLD THE IMPUGNED ORDER. A.Y. 2015-16 : 5. BOTH THE SIDES AGREE THAT THE FACTS FOR THIS YEAR ARE IDE NTICAL EXCEPT FOR THE DIFFERENCE THAT THE PROVISION IN THE CURRENT Y EAR WAS MADE @ 0.50 PAISE AND SUCH AMOUNT OF PROVISION WORKED O UT AT ITA NOS.2541/PUN/2017 & 847/PUN/2018 M/S. BARAMATI TALUKA SAHAKARI DUDH UTPADAK SANGH LTD., 4 RS.3,55,11,601/-. THE AO MADE SUCH ADDITION BY FOLLOWING HIS OWN VIEW FOR EARLIER YEARS AND THE LD. CIT(A) DELETED THE DISALLOWANCE FOLLOWING HIS OWN VIEW FOR THE PRECEDING YEARS. AS WE HAVE DECIDED THIS ISSUE IN FAVOUR OF THE ASSESSEE FOR THE IMMEDIATELY PRECEDING YEAR, FOLLOWING THE PRECEDENT, WE U PHOLD THE IMPUGNED ORDER TO THIS EXTENT. 6. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE DISMIS SED ORDER PRONOUNCED IN THE OPEN COURT ON 05 TH JUNE, 2020. SD/- SD/- (PARTHA SARATHI CHAUDHURY) (R.S.SYAL) JUDICIAL MEMBER VIC E PRESIDENT PUNE; DATED : 05 TH JUNE, 2020 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. THE CIT(A)-7, PUNE 4. 5. THE PR. CIT(A)-6, PUNE , , / DR B, ITAT, PUNE 6. / GUARD FILE / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NOS.2541/PUN/2017 & 847/PUN/2018 M/S. BARAMATI TALUKA SAHAKARI DUDH UTPADAK SANGH LTD., 5 DATE 1. DRAFT DICTATED ON 04-06-2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 04-06-2020 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. *