Bhima Sahakari Sakhar Karkhana LTD, Pune V. Income-tax Officer Ward - 14 (4), Pune

ITA 90/PUN/2022

AI Insights

The case involves Bhima Sahakari Sakhar Karkhana Ltd., which appealed against the order of the Commissioner of Income Tax (Appeals)-7, Pune, concerning disallowances made under the Income Tax Act, 1961. The primary issues were the disallowance of Rs.18,22,161 for the sale of sugar at concessional rates and Rs.6,50,475 for VSI contributions. The Tribunal found that the issue of concessional sugar sales was not res integra and referred it back to the Assessing Officer for fresh adjudication. Regarding the VSI contributions, the Tribunal followed the precedent set in a similar case, ruling in favor of the assessee.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137525 (ITAT-PUNE)
• Duration Of Justice: 11 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-01-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 18-12-2022
• Assessment Year: 2016-2017
• Appeal Filed On: 01-02-2022
• Other Referred Cases: The Malegaon Sahakari Sakhar Karkhana Limited vs. ITO, Bhima S.S.K. Ltd. (ITA No.1414/PUN/2000)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 250

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 No.90/PUN/2022 नधा रण वष / Assessment Year : 2016-17 Bhima Sahakari Sakhar Karkhana Ltd., A/P. Madhukarnagar, Patas, Tal. Daund, Dist. Pune -412 219 Maharashtra PAN : AAATB1781B Vs. ITO, Ward-14(4), Pune Appellant Respondent आदेश / ORDER PER S.S. GODARA, JM : This assessee’s appeal for AY 2016-17 arises against the CIT(A), Pune-7’s order dated 25-10-2019 passed in case No.ITBA/APL/S/250/2019-20/1019464000(1) in proceedings under Section 250 of the Income Tax Act, 1961, in short ‘the Act’. Case called twice. None appears at the assessee’s behest. It is accordingly proceeded ex-parte. 2. The assessee pleads the following substantive grounds in the instant appeal: Assessee by None Revenue by Shri M.G. Jasanani Date of hearing 19-12-2022 Date of pronouncement 05-01-2023 ITA No.90/PUN/2022 Bhima Sahakari Sakhar Karkhana Ltd., 2 1) On the facts and in the circumstances of the case and in law of the learned Commissioner of Income Tax (Appeals)-7, Pune has erred in disallowing and adding back an amount of Rs.18,22,161/- on account of sale of Sugar at Concessional rate. 2) On facts and in the circumstances of the case and in law of the learned Commissioner of Income Tax (Appeals)-7, Pune has erred in disallowing and adding back an amount of Rs.6,50,475/- on account of VSI Contribution.” 3. Mr. Jasanani vehemently supported the learned lower authorities action on the former substantive ground regarding sale of sugar at concessional rate to members and section 80P(2) deduction; disallowed in both the lower proceedings. He fails to dispute that the issue of sale of sugar at concessional rate is no more res integra in light of orders of tribunal’s various co-ordinate benches, and more particularly ITA No.68/PUN/2018 in The Malegaon Sahakari Sakhar Karkhana Limited vs. ITO order dated 21.40.2021 has set aside the concerned assessee’s substantive ground back to the assessing authority for its afresh appropriate adjudication. We thus accept the assessee’s former substantive ground leaving it open for the Assessing Officer inter-alia to adjudicate and verify all the relevant facts afresh as per law in consequential proceedings. Ordered accordingly. 4. Next comes the assessee’s latter substantive ground regarding contribution to Vasantdada Sugar Institute (VSI) amounting to Rs.6,50,475/-. The AO observed that the amount was paid to a ITA No.90/PUN/2022 Bhima Sahakari Sakhar Karkhana Ltd., 3 research institute was admissible u/s.35(1) of the Act only on actual payment/actual expenditure and thus disallowed the same. The ld. CIT(A) accorded its imprimatur, against which the assessee has approached the Tribunal. This latter substantive ground also is no more res integra by view of order passed by the Pune Benches of the Tribunal in the case of Bhima S.S.K. Ltd. (ITA No.1414/PUN/2000). No material has been placed on record to show that this order of the Tribunal has been reversed or modified in any manner by the Hon’ble High Court. Respectfully following the precedent, we decide this issue in favour of the assessee. 5. This assessee’s appeal is partly allowed in above terms. Order pronounced in the Open Court on 05 th January, 2023. Sd/- Sd/- (DIPAK P. RIPOTE) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER प ु णे Pune; दनांक Dated : 05 th January, 2023 Satish ITA No.90/PUN/2022 Bhima Sahakari Sakhar Karkhana Ltd., 4 आदेश क त ल प अ े षत/Copy of the Order is forwarded to: 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. The CIT(A)-7, Pune 4. 5. The Pr.CIT-6, Pune िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे “B” / DR ‘B’, ITAT, Pune 6. गाड फाईल / Guard file आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune Date 1. Draft dictated on 28-12-2022 Sr.PS 2. Draft placed before author 30-12-2022 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.