Dy. Comm. of Income-tax, Ahmednagar v. Pad. Dr. Vithalrao Vikhe Patil SSK Ltd.,, Ahmednagar

ITA 1564/PUN/2011 | 2007-2008
Pronouncement Date: 15-07-2013 | Result: Allowed

Appeal Details

RSA Number 156424514 RSA 2011
Assessee PAN AAAAP0848A
Bench Pune
Appeal Number ITA 1564/PUN/2011
Duration Of Justice 1 year(s) 7 month(s) 10 day(s)
Appellant Dy. Comm. of Income-tax, Ahmednagar
Respondent Pad. Dr. Vithalrao Vikhe Patil SSK Ltd.,, Ahmednagar
Appeal Type Income Tax Appeal
Pronouncement Date 15-07-2013
Appeal Filed By Department
Order Result Allowed
Bench Allotted B
Tribunal Order Date 15-07-2013
Date Of Final Hearing 04-07-2013
Next Hearing Date 04-07-2013
Assessment Year 2007-2008
Appeal Filed On 05-12-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER AND SHRI R.K.PANDA ACCOUNTANT MEMBER ITA NO. 1564/PN/2011 (ASSESSMENT YEAR: 2007-08) DY. CIT AHMEDNAGAR CIRCLE AHMEDNAGAR APPELLANT VS. PD. DR. VITHALRAO VIKHE PATIL SSK LTD. POST PRAVARANAGAR TAL. RATHATA DIST. AHMEDNAGAR 413 712 PAN AAAAP 0848A .. RESPONDENT APPELLANT BY: SHRI ADAR SHA KUMAR MODI RESPONDENT BY: SHRI K. S HRINIVASAN DATE OF HEARING : 04-07-2013 DATE OF ORDER : 15.07.2013 ORDER PER SHAILENDRA KUMAR YADAV JM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE CIT(A)-I PUNE DATED 31-5-2011 FOR A.Y. 2007-08 RAISING FOLLOWING GROUND:- ON THE FACTS AND CIRCUMSTANCES OF THE CASE THE L D. CIT(A) GROSSLY ERRED IN DELETING THE ADDITION OF RS. 36 52 220/- MADE ON ACCOUNT OF SALE OF SUGAR TO THE MEMBERS AT CONCE SSIONAL RATE. 2. IN THIS CASE THE ONLY ISSUE IS WHETHER THE DIFF ERENCE BETWEEN THE AVERAGE PRICE OF SUGAR SOLD IN THE MARKET AND T HE PRICE OF SUGAR SOLD BY THE ASSESSEE TO ITS MEMBERS AT CONCESSIONAL RATE IS TO BE TAXED UNDER THE HEAD APPROPRIATION OF PROFIT. 3. SIMILAR ISSUE CAME UP FOR CONSIDERATION BEFORE T HE HONBLE SUPREME COURT IN THE CASE OF CIT BOMBAY VS. KRISHNA SSK LTD. AND OTHERS IN CIVIL APPEAL NO. 6950 OF 2012 ETC. WH EREIN VIDE ITS JUDGMENT DATED 25-9-2012 THE HONBLE SUPREME COURT REMITTED THE MATTER TO THE FILE OF THE CIT(A) WITH A DIRECTION T O RE-CONSIDER THE MATTER IN THE LIGHT OF THE FOLLOWING DIRECTIONS. THE QUESTION WHETHER THE ABOVE DIFFERENCE BETWEEN THE FAIR MARKET PRICE AND THE CONCESSIONAL PRICE SHOULD OR S HOULD NSOT BE ADDED TO THE TOTAL INCOME OF THE ASSESSEE SOCIET Y NEEDS TO BE RE-LOOKED BY CIT(A). APART FROM THE AFORESAID QUESTION CIT(A) WOULD TAK E INTO ACCOUNT WHETHER THE ABOVE MENTIONED PRACTICE OF SE LLING SUGAR AT CONCESSIONAL RATE HAS BECOME THE PRACTICE OR CUSTOM IN THE IN THE CO-OPERATIVE SUGAR INDUSTRY? AND WHET HER ANY RESOLUTION HAS BEEN PASSED BY THE STATE GOVERNMENT SUPPORTING THE PRACTICE? THE CIT(A) WOULD ALSO CON SIDER 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 ACCOU NTS AND VERIFY THE BASIS FOR SALE OF SUGAR AT CONCESSIONAL PRICE ON MONTH-TO-MONTH BASIS WE THEREFORE KEEP ALL QUESTI ONS OF LAW AND FACTS OPEN. NEEDLESS TO ADD THE CIT(A) WOULD GIVE LIBERTY TO B OTH THE SIDES TO PRODUCE RELEVANT DOCUMENTS. FOR THE ABOVE REASONS WE REMIT THE CASES TO CIT(A) TO DE-NOVO CONSIDER THE MATTER. 4. RESPECTFULLY FOLLOWING THE AFORESAID JUDGMENT OF THE HONBLE SUPREME COURT WE RESTORE THE ISSUE TO THE FILE OF THE CIT(A) AND DECIDE THE MATTER AFTER TAKING INTO CONSIDERATION T HE ABOVE DIRECTIONS GIVEN BY THE HONBLE SUPREME COURT. 5. IN THE RESULT THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 15 TH JULY 2013 SD/- SD/- (R.K.PANDA) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE DATED: 15 TH JULY 2013 ANKAM COPY TO:- 1) ASSESSEE 2) DEPARTMENT 3) THE CIT(A)-I PUNE 4) THE CIT- I PUNE 5) THE DR B BENCH I.T.A.T. PUNE. 6) GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY I.T.A.T. PUNE