SHRI DUDHAGANGA VEDGANGA SAHAKARI SAKHAR KARKHANA LTD ,KOLHAPUR V. ACIT/JCIT, PUNE

ITA 1754/PUN/2024

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The case involves Shri Dudhaganga Vedganga Sahakari Sakhar Karkhana Ltd., a cooperative society engaged in sugar manufacturing, which appealed against the orders of the National Faceless Appeal Centre for the Assessment Years 2014-15, 2017-18, and 2018-19. The appeals were initially dismissed by the ld.CIT(A) due to delays in filing, which the Tribunal found necessary to reconsider. The primary contention in the appeals was the additions made by the Assessing Officer regarding excess payments over the Fair and Remunerative Price (FRP) for sugarcane, which were contested in the appeals.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 24699 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA VIJAY
• Keywords: Condonation of delay; Reasonable cause
• Section: 72

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “A”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.1754 to 1756/PUN/2024 Assessment Years : 2014-15, 2017-18 & 2018-19 Shri Dudhaganga Vedganga Sahakari Sakhar Karkhana Ltd. Bidri, At & post Bidri, Kagal, Kolhapur - 416208 Maharashtra PAN : AAAAS3732N Vs . Additional/Joint/Deputy/ Assistant Commissioner of Income Tax/Income Tax Officer/National Faceless Assessment Centre, Delhi/ ACIT, Circle-1, Kolhapur Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned three appeals pertaining to the Assessment Years 2014-15, 2017-18 & 2018-19 are directed against the separate orders passed by National Faceless Appeal Centre u/s.250 of the Income-tax Act, 1961 (in short ‘the Act’) which inturn are arising out of the respective Assessment orders. 2. When the appeals were called for, none appeared on behalf of the assessee society despite due service of notice of hearing. We therefore proceed to dispose of the appeals with the able assistance from the ld. Departmental Representative exparte qua the assessee. Assessee by : None Revenue by : Shri Chandra Vijay Date of hearing : 20.01.2025 Date of pronouncement : 30.01.2025 ITA Nos.1754 to 1756/PUN/2024 Shri Dudhganga Vedganga Sahakari Sakhar Karkhana Ltd. 2 3. At the outset, Ld. Departmental Representative submitted that assessee is a society registered under the Maharashtra Coop. Societies Act and is engaged in the business of manufacturing of White Crystal Sugar. It filed the return of income for the A.Y. 2014-15 declaring total loss of Rs.7,38,70,452/-. The case selected for scrutiny through CASS and the assessment was completed us.143(3) making certain additions. Ld.CIT(A) confirmed the additions. Assessee approached the Tribunal and the Tribunal vide order dated 01.10.2019 gave certain directions remitting the matter to the file of AO. Pursuant to Tribunal order, the assessment was completed by the AO vide order dated 07.09.2021 u/s.143(3) r.w.s. 254 of the Act making addition of Rs.11.25 crore on account of excess price paid over the above the Fair and Remunerative Price (FRP). 4. Aggrieved assessee approached the ld.CIT(A) with a delay of 72 days. The ld.CIT(A) dismissed the appeal in limine, without condoning the delay. 5. Similarly, in ITA No.1756/PUN/2024 for the A.Y.2018-19 also, the assessee declared loss of Rs.7.74 crore. The case was selected for scrutiny through CASS and the assessment was completed by the AO u/s.143(3) r.w.s.144B of the Act making addition of Rs.14.07 crore on account of price paid over and above FRP. Aggrieved assessee preferred appeal before the ld.CIT(A) with a delay of 116 days and the ld.CIT(A) dismissed the appeal in limine without condoning the delay. ITA Nos.1754 to 1756/PUN/2024 Shri Dudhganga Vedganga Sahakari Sakhar Karkhana Ltd. 3 6. In ITA No.1755/PUN/2024 for the A.Y. 2017-18, the assessee filed return of income on 27.10.2017 declaring Nil income. The case was selected for scrutiny through CASS and the assessment was completed by the AO u/s.143(3) of the Act making addition of Rs.13.25 crore on account of price paid over and above FRP. 7. Now the assessee has approached the Tribunal challenging the respective orders passed by ld.CIT(A) for the A.Yrs. 2014-15, 2017-18 and 2018-19. 8. We have heard the ld. Departmental Representative and perused the record placed before us. From the perusal of the impugned orders for the A.Yrs. 2014-15, 2017-18 and 2018-19, it reveals that ld.CIT(A) has passed the orders exparte qua the assessee. For the A.Yrs. 2014-15 and 2018-19, ld.CIT(A) has basically dismissed the appeals in limine by not condoning the delay of 72 days and 116 days occurred in the appeals. Ld.CIT(A) in the impugned orders for the A.Yrs. 2014-15 and 2018-19 has mentioned that “the appellant neither mentioned the delay in Form 35 nor filed any affidavit in this regard. In Form 35, against column 14, whether there is a delay in filing appeal, the appellant has mentioned as ‘NO’. The appellant has not furnished any proper reasons for delay in filing of appeal”. Further, the assessee in the grounds of appeal has assailed that ld.CIT(A) erred in passing exparte order u/s.250 of the Act without considering the prayer for condonation of delay in filing of appeal which was filed on 17.07.2024 vide Ack No.765434941170724 and Ack No.765103841170724 respectively. ITA Nos.1754 to 1756/PUN/2024 Shri Dudhganga Vedganga Sahakari Sakhar Karkhana Ltd. 4 9. Considering the facts and circumstances prevailing in the instant appeals for the years under consideration, we in the interest of justice,,, deem it proper to restore the issues on merit regarding the additions as well as the issue of condonation of delay are being remitted back to the file of ld.CIT(A) for denovo adjudication. Ld. Departmental Representative also has no objection for the same. Assessee is directed to provide proper email id before the authorities to ensure proper communication from the ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.CIT(A) shall be free to proceed in accordance with law. Finding of the ld. CIT(A) are set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes. 10. In the result, all the three appeals of the assessee are allowed for statistical purposes. Order pronounced on this 30th day of January, 2025. Sd/- Sd/- (VINAY BHAMORE) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 30th January, 2025. Satish ITA Nos.1754 to 1756/PUN/2024 Shri Dudhganga Vedganga Sahakari Sakhar Karkhana Ltd. 5 आदेश क\u0002 \u0003ितिलिप अ\tेिषत / Copy of the Order forwarded to : 1. अपीलाथ\f / The Appellant. 2. \r\u000eयथ\f / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय \rितिनिध, आयकर अपीलीय अिधकरण, “A” ब\u0014च, पुणे / DR, ITAT, “A” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "