Appeal details
Counselvise Citation
93024514 RSA 2012
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 year(s) 2 month(s) 13 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
23-07-2014
Appeal Filed By
Department
Order Result
Allowed
Bench Allotted
A
Next Hearing Date
30-10-2013
Assessment Year
2008-2009
Appeal Filed On
10-05-2012
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B , PUNE BEFORE: SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO . 856 / P N/ 20 1 2 ASSESSMENT YEAR : 2008 - 09 DY. COMMISSIONER OF INCOME TAX, AHM EDNAGAR CIRCLE, AHMEDNAGAR VS. THE SHRIGONDA SAHAKARI SAKHAR KARKHANA LTD., A/P. - SHRIGONDA FACTORY, TAL. - SHRIGONDA, DISTT. - AHMEDNAGAR (APPELLANT) (RESPONDENT) PAN NO. AAAAS4091E ITA NO . 930/ PN/20 12 ASSESSMENT YEAR : 2008 - 09 DY. COMMISSIONER O F INCOME TAX, MANJUNATH MANOR', OPP. - SCIENCE COLLEGE, SADAR BAZAR, SATARA VS. AJINKYATARA SAHAKARI SAKHAR KARKHANA LTD., A/P. - SHAHUNAGAR, SHENDRE, TAL. - SATARA, DISTT. - SATARA (APPELLANT) (RESPONDENT) PAN NO. AAAAA0510E APPELLANT BY: SMT. S. PRA VEENA RESPONDENT BY: SHRI PRAMOD SHINGTE DATE OF HEARING : 14 - 07 - 2014 DATE OF PRONOUNCEMENT : 23 - 07 - 2014 ORDER P ER R.S. PADVEKAR , JM : - TH ESE TWO APPEALS ARE FILED BY THE R EVENUE IN THE CASES OF TWO DIFFERENT ASSESSEES CHALLENGING THE IMPUGNED ORDER S OF THE LD. CIT(A) - I & I II , PUNE DATED 30 - 11 - 2011 & 29 - 02 - 2012 RESPECTIVELY FOR THE A.Y . 2008 - 09 . 2. IN BOTH THE APPEALS, THE SOLITARY COMMON ISSUE WHICH ARISES FOR OUR CONSIDERATION IS WHETHER ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. CI T(A) ERRED IN DELETING THE ADDITION S OF RS. 44,63,862/ - AND RS. 44,10,906/ - RESPECTIVELY FOR THE A.Y . 2008 - 09 MADE BY THE ASSESSING 2 ITA NO S. 856 & 930/PN/2012, THE SHRIGONDA & AJINKYATARA SSK LTD., AHMEDNAGAR & SATARA OFFICER WITH REFERENCE TO SALE OF SUGAR AT CONCESSIONAL RATE TO THE MEMBERS AND SHAREHOLDERS OF THE ASSESSEES W HEN THE ASSESSI NG OFFICER MADE THE ABOVE ADDITIONS BY HOLDING THAT THE SAID CONCESSION AMOUNTS TO DISTRIBUTION OF PROFIT ? 3 . WE HAVE HEARD THE PARTIES. BOTH THE PARTIES AGREED THAT IN THE PRESENT CASE ALSO THE RELEVANT FACTS ARE NOT ON RECORD AS IN THE CASE OF CIT VS. KRISHNA SSK LTD. AND O RS. (2012 ) 27 TAXMANN.COM 162 (SC). WE FIND THAT THE IDENTICAL ISSUE HAS BEEN CONSIDERED BY THE HON'BLE SUPREME COURT IN THE CASE OF KRISHNA SSK LTD. AND O RS. (SUPRA). THE HON'BLE SUPREME COURT HAS REMITTED THE MATTER TO THE FILE OF THE CIT(A) WITH FOLLOWING DIRECTION S TO CONSIDER THE MATTER DE NOVO : THE QUESTION, WHETHER THE ABOVE DIFFERENCE BETWEEN THE FAIR MARKET PRICE AND THE CONCESSIONAL PRICE SHOULD OR SHOULD NOT BE ADDED TO THE TOTAL INCOME OF THE ASSESSEE SOCIETY, NEEDS TO BE RE - LOOKED BY CIT(A). APART FROM THE AFORESAID QUESTION, CIT(A) WOULD TAKE INTO ACCOUNT, WHETHER THE ABOVE MENTIONED PRACTICE OF SELLING SUGAR AT CONCESSIONAL RATE HAS BECOME THE PRACTICE OR CUSTOM I S THERE IN THE CO - OPERATIVE SUGAR INDUSTRY? AND WHE THER ANY RESOLUTION HAS BEEN PASSED BY THE STATE GOVERNMENT SUPPORTING THE PRACTICE? THE CIT(A) WOULD ALSO CONSIDER ON WHAT BASIS THE QUANTITY OF THE FINAL PRODUCT, I.E. SUGAR, IS BEING FIXED FOR SALE OF FARMERS/CANE GROWERS/MEMBERS EACH YEAR ON MONTH TO - MONTH BASIS, APART FROM DIWALI? THERE ARE SOME OF THE QUESTIONS WHICH HAVE NOT BEEN ADDRESSED BY THE AUTHORITIES BELOW IN THE IMPUGNED ORDERS. THE CIT(A) WOULD BE ENTITLED TO LOOK INTO THE ACCOUNTS AND VERIFY THE BASIS FOR SALE OF SUGAR AT CONCESSIONAL P RICE ON MONTH - TO - MONTH BASIS WE THEREFORE, KEEP ALL QUESTIONS OF LAW AND FACTS OPEN. NEEDLESS TO ADD, THE CIT(A) WOULD GIVE LIBERTY TO BOTH THE SIDES TO PRODUCE RELEVANT DOCUMENTS. 3 ITA NO S. 856 & 930/PN/2012, THE SHRIGONDA & AJINKYATARA SSK LTD., AHMEDNAGAR & SATARA FOR THE ABOVE REASONS, WE REMIT THE CASES TO CIT(A) TO DE - NOVO CONSIDER THE MATTER. 4 . WE, THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF KRISHNA SSK LTD. AND O RS. (SUPRA) , RESTORE THE ISSUE TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION IN THE LIGHT OF THE ABOVE DIRECTIONS GIV EN BY THE APEX COURT IN THE CASE OF KRISHNA SSK LTD. AND O RS. (SUPRA). ACCORDINGLY, THE GROUNDS TAKEN BY THE REVENUE ON THIS ISSUE IN BOTH THE APPEALS ARE ALLOWED FOR THE STATISTICAL PURPOSES. 5. IN THE RESULT, BOTH THE APPEALS OF THE REVENUE ARE ALLOWED FOR THE STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 23 - 07 - 2014 SD/ - SD/ - ( G . S . PAN NU ) ( R.S. PADVEKAR ) ACCOUNTANT MEMBER JUDICIAL MEMBER RK /PS PUNE , DATED : 23 RD JULY, 2014 COPY TO 1 DEPA RTMENT 2 ASSESSEE 3 THE CIT(A) - I & III , PUNE 4 THE CIT - I & III , PUNE 5 THE DR, ITAT, B BENCH, PUNE . 6 GUARD FILE. //TRUE COPY// BY ORDER PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL PUNE
