ACIT, Nashik v. Vasantrao Dada Patil SSK Ltd., Nashik

ITA 1676/PUN/2005 | 2002-2003
Pronouncement Date: 13-01-2011 | Result: Dismissed

Appeal Details

RSA Number 167624514 RSA 2005
Assessee PAN AAAAV0637K
Bench Pune
Appeal Number ITA 1676/PUN/2005
Duration Of Justice 5 year(s) 2 month(s) 16 day(s)
Appellant ACIT, Nashik
Respondent Vasantrao Dada Patil SSK Ltd., Nashik
Appeal Type Income Tax Appeal
Pronouncement Date 13-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 13-01-2011
Assessment Year 2002-2003
Appeal Filed On 27-10-2005
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV JUDICIAL MEMBER AND SHRI G.S. PANNU ACCOUNTANT MEMBER ITA NO. 1676/PN/05 (ASSTT YEAR: 2002-03) ASSTT. COMMISSIONER OF INCOME-TAX NASHIK APPELLANT VS. VASANTRAO DADA PATIL SSK LTD. RESPONDENT VITHEWADI KALWAN NASHIK PAN AAAAV0637K APPELLANT BY : SHRI TEJINDER SINGH RESPONDENT BY : NONE ORDER PER G.S. PANNU A.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-I NASHIK DATED 10.8.2005 WHICH IN TURN HAS ARISEN FROM AN ORDER DATED 28.1.2005 PASSED BY THE ASSESSING OFFICER UNDER SEC . 143(3) OF THE INCOME-TAX ACT 1961 (IN SHORT THE ACT) PERTA INING TO THE ASSESSMENT YEAR 2002-03. 2. AT THE TIME OF HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE APPEARED ON BEHALF OF THE APPELLANT- REVENUE WHILE NONE APPEARED ON BEHALF OF THE RESPONDENT-ASS ESSEE IN SPITE OF NOTICE OF HEARING HAVING BEEN ISSUED BY RE GISTERED POST A.D SUFFICIENTLY IN ADVANCE. THEREFORE THE APPEAL IS BEING DISPOSED OF EX PARTE QUA RESPONDENT AFTER HEARING T HE LEARNED DEPARTMENTAL REPRESENTATIVE ON MERITS. ITA NO1676/PN/05 VASANTRAO DADA PATIL SSK LTD KALWAN 2 3. IN THIS APPEAL REVENUE HAS RAISED TWO GROUNDS R ELATING TO ADDITIONS OF RS1 92 42 775/- BEING THE DIFFERENCE I N SALE PRICE OF SUGAR AND OF RS 4 42 69 189/- ON ACCOUNT OF EXCESS SUGAR CANE PRICE PAID. 4. IN REGARD TO THE FIRST GROUND OF APPEAL THE BRI EF FACTS ARE THAT THE ASSESSEE A CO-OPERATIVE SOCIETY MANUFACT URING SUGAR SOLD 54250 BAGS OF SUGAR TO ONE M/S JAY JAGDISH SUG AR CO. DHULE FOR EXPORT PURPOSES AS PER AGREEMENT DRAWN. T HE ABOVE AGENT INSTEAD EXPORTING THE QUOTA SOLD THE STOCK I N LOCAL MARKET. SINCE THE RATE OF QUOTA FOR EXPORT WAS LES THAN THE MARKET RATE THE ASSESSEE MADE A CLAIM BEFORE THE CO-OPERATIVE C OURT FOR RECOVERY OF LOSS ON DIFFERENCE IN RATE AMOUNTING TO RS 1 20 93 677/- PLUS INTEREST. ON THESE FACTS THE AS SESSING OFFICER MADE AN ADDITION OF RS 1 92 42 775/- TAKING THE MAR KET RATE AS PER RECORDS WHICH IS HIGHER THAN THE RATE ADOPTED BY THE ASSESSEE FOR MAKING THE CLAIM BEFORE THE COURT. 5. ON APPEAL BEFORE THE COMMISSIONER OF INCOME-TAX (APPEALS) IT WAS CONTENDED ON BEHALF OF THE ASSESS EE THAT THE ASSESSEE HAD HANDED OVER 542540 BAGS OF SUGAR EACH CONTAINING 100 KGS. TO M/S JAY JAGDISH SUGAR CO FO R EXPORT AND THE ASSESSEE IS NOT RESPONSIBLE FOR THE DIVERSION O F SUGAR BY THE SAID MERCHANT EXPORTER TO DOMESTIC MARKET AND THERE FORE THE ADDITION ON ACCOUNT OF ADDITIONAL REALIZATION DUE T O DIVERSION OF SUGAR TO DOMESTIC MARKET BY THE MERCHANT EXPORTER W AS NOT WARRANTED SO FAR AS THE ASSESSEE WAS CONCERNED. IT WAS ALSO PLEADED THAT THE CLAIM FOR REALIZATION OF ADDITIONA L PRICE WAS MADE ON THE MERCHANT EXPORTER BUT IT WAS DISPUTED AND THE ADDITIONAL REALIZATION ON ACCOUNT OF DIVERSION OF S UGAR TO ITA NO1676/PN/05 VASANTRAO DADA PATIL SSK LTD KALWAN 3 DOMESTIC MARKET BY THE MERCHANT EXPORTER HAS NOT BE EN RECEIVED BY THE ASSESSEE SO FAR. AFTER CONSIDERING THE SUBMI SSIONS MADE ON BEHALF OF THE ASSESSEE AND THE JUDICIAL PRONOUNC EMENTS SUCH AS CIT V SOORAJMULL 129 ITR 169 (CAL) CIT V SAYED KHADRUDDIN ALI KHAN 144 ITR 266 (AP) DIT (EXEMPTION) V GOYAL CHARITABLE TRUST 215 ITR 672 (DEL) AND HINDUSTAN HOUSING & LA ND DEVELOPMENT TRUST LTD. 161 ITR 524 (SC) THE COMMIS SIONER OF INCOME-TAX (APPEALS) CONCLUDED THAT IT WAS CLEAR TH AT THE RIGHT TO RECEIVE THE ADDITIONAL REALIZATION DID NOT ACCRUE T O THE ASSESSEE DURING THE ASSESSMENT YEAR UNDER APPEAL. THE COMMIS SIONER OF INCOME-TAX (APPEALS) ACCORDINGLY DIRECTED THE ASSES SING OFFICER TO VERIFY THE FACT OF FINALITY OF RIGHT OF THE ASSE SSEE TO RECEIVE THE ADDITIONAL AMOUNT AND TO TAX THE SAID AMOUNT IN THE YEAR WHEN THE AMOUNT AWARDED BY THE ARBITRATOR REACHED FINALI TY BY WAY OF SETTLEMENT DECISION OF THE COURT OR OTHERWISE. THE COMMISSIONER OF INCOME-TAX (APPEALS) THEREFORE DE LETED THE SAID ADDITION. 6. AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENT ATIVE WE FIND THAT THERE IS NO INFIRMITY IN THE ABOVE FINDIN GS OF THE COMMISSIONER OF INCOME-TAX (APPEALS) AND NO CHANGE IN THE FACT POSITION NOTED BY THE COMMISSIONER OF INCOME-TAX (A PPEALS) HAS BEEN BROUGHT TO OUR NOTICE. WE ACCORDINGLY AFFIRM THE DECISION OF THE COMMISSIONER OF INCOME-TAX (APPEALS). REVENUE F AILS ON THIS GROUND OF APPEAL. 7. IN THE SECOND GROUND THE ISSUE RELATES TO SUGAR CANE PURCHASE COST PAID BY THE ASSESSEE. THE ASSESSING O FFICER NOTICED THAT THE ASSESSEE HAD PAID CANE PRICE OVER AND ABOVE THE PRICE FIXED BY THE CENTRAL GOVERNMENT TO THE EX TENT OF RS ITA NO1676/PN/05 VASANTRAO DADA PATIL SSK LTD KALWAN 4 4 42 69 189/-. SUCH EXCESS CANE PRICE PAID WAS DISA LLOWED BY THE ASSESSING OFFICER. THE COMMISSIONER OF INCOME-T AX (APPEALS) HAS ALLOWED THE CLAIM RELYING ON THE FOLL OWING DECISIONS: 1. CIT V SHREE PANCHGANGA SSK LTD 250 ITR 772 2. CIT V SHREE CHHATRAPATI SSK LTD 245 ITR 498 3. ADDL. CIT V M P SUGAR MILLS P LTD 148 ITR 203 (ALL) 4. MOTILAL PADAPATI SUGAR MILLS V CIT 5. CIT V SWAROOP VEGETABEL PRODUCTS 210 ITR 706 ( ALL) 6. MANJRA SSK LTD & ORS ITA NO 647/PN/96 ETC. ITAT SB- MUM. 7. JCIT SR-2 AURANGABAD V SIDDESHWAR SSK LTD. MANIKNAGAR ITA NO 15/PN/98 ETC. ITAT PUNE BENCH VIDE ORDER DT 25.12.2004. BEFORE US THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS NOT BROUGHT OUT ANY DECISION TO THE CONTRARY AND THERE FORE WE AFFIRM THE DECISION OF THE COMMISSIONER OF INCOME-TAX (APP EALS). REVENUE FAILS ON THIS GROUND OF APPEAL ALSO. 8. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSE D. PRONOUNCED IN THE OPEN COURT ON THIS 13TH DAY OF JANUARY 2011. SD/- SD/- (SHAILENDRA KUMAR YADAV) (G.S. PANN U) JUDICIAL MEMBER ACCOUNTANT MEMBER PUNE DATED: 13TH JANUARY 2011 COPY TO:- 1) VASANTRAO DADA PATIL SSK LTD. KALWAN NASHIK 2) THE ACIT NASHIK 3) THE CIT (A)-I NASHIK 4) THE CIT-I NASHIK 5) THE D R B BENCH ITAT PUNE. BY ORDER TRUE COPY ASSTT.REGISTRAR I.T.A.T. PUNE B