ACIT, Circle-1,, Solapur v. Shri Shankar Sahakari Sakhar Karkhana Ltd.,, Solapur

ITA 2542/PUN/2012 | 2009-2010
Pronouncement Date: 25-04-2014 | Result: Allowed

Appeal Details

RSA Number 254224514 RSA 2012
Assessee PAN AAAAS2034B
Bench Pune
Appeal Number ITA 2542/PUN/2012
Duration Of Justice 1 year(s) 4 month(s) 1 day(s)
Appellant ACIT, Circle-1,, Solapur
Respondent Shri Shankar Sahakari Sakhar Karkhana Ltd.,, Solapur
Appeal Type Income Tax Appeal
Pronouncement Date 25-04-2014
Appeal Filed By Department
Order Result Allowed
Bench Allotted B
Tribunal Order Date 25-04-2014
Date Of Final Hearing 22-04-2014
Next Hearing Date 22-04-2014
Assessment Year 2009-2010
Appeal Filed On 24-12-2012
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B PUNE BEFORE: SHRI R.S. PADVEKAR JUDICIAL MEMBER AND SHRI R.K. PANDA ACCOUNTANT MEMBER ITA NO . 2523 / P N/ 20 1 2 ASSESSMENT YEAR : 200 9 - 10 THE ASSISTANT COMMISSIONER OF INCO ME TAX CIRCLE - 6 PUNE VS. SHREE SOMESHWAR SAHAKARI SAKHAR KARKHANA LTD. P.O. - SOMESHWAR N AGAR TALUKA - BARAMATI DISTT. - PUNE (APPELLANT) (RESPONDENT) PAN NO. AAAAS2034B ITA NO . 2525/ PN/20 12 ASSESSMENT YEAR : 2009 - 10 THE ASSISTANT COMMISSIONER O F INCOME TAX CIRCLE - 6 PUNE VS. SHREE RAJGAD SAHAKARI SAKHAR KARKHANA LTD. ANANT NAGAR (NIGADE) TALUKA - BHOR DISTT. - PUNE (APPELLANT) (RESPONDENT) PAN NO. AAAAR0830J ITA NO . 2531/ PN/20 12 ASSESSMENT YEAR : 2008 - 09 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE - 1 SANGLI VS. KRANTI SSK LTD. A/P - KUNDAL TA LUKA - PULAS DISTT. - SANGLI (APPELLANT) (RESPONDENT) PAN NO. AAAA K12777C ITA NO . 2541/ PN/20 12 ASSESSMENT YEAR : 2009 - 10 THE ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE - 1 SOLAPUR V S. SAHAKAR MAHARSHI SHANKARRAO MOHITE PATIL SAHAKARI SAKHAR KARKHANA LTD. YASHWANT NAGAR AKLUJ TAL. - MALSHIRAS DISTT. - SOLAPUR (APPELLANT) (RESPONDENT) PAN NO. AAAAS3736J 2 ITA NO S. 2523 2525 2531 2541 2542 2551 2552 & 2553 /PN/2012 SHREE SOMESHWAR SAHAKARI SAKHAR KARKHANA LTD. AND O RS. PUNE ITA NO . 2542/ PN/20 12 ASSESSMENT YEAR : 2009 - 10 THE ASSISTANT COMMISSION ER OF INCOME TAX CIRCLE - 1 SOLAPUR VS. SHRI SHANKAR SAHAKARI SAKHAR KARKHANA LTD. SADASHIVNAGAR TAL. - MALSHIRAS DISTT. - SOLAPUR (APPELLANT) (RESPONDENT) PAN NO. AAAAS3735M ITA NO . 2551/ PN/20 12 ASSESSMENT YEAR : 2009 - 10 THE ASSISTANT COMMISSIO NER OF INCOME TAX SATARA CIRCLE SATARA VS. KISANVEER SATARA SAHAKARI SAKHAR KARKHANA LTD. KISANVEER NAGAR TAL. - WALI DISTT. - SATARA (APPELLANT) (RESPONDENT) PAN NO. AAAAK0947M ITA NO . 2552/ PN/20 12 ASSESSMENT YEAR : 2009 - 10 THE ASSISTANT COM MISSIONER OF INCOME TAX SATARA CIRCLE SATARA VS. YASHWANTRAO MOHITE KRISHNA SAHAKARI SAKHAR KARKHANA LTD. A/P. - RETHARE B.K. TAL. - KARAD DISTT. - SATARA (APPELLANT) (RESPONDENT) PAN NO. AAAAK0946L ITA NO . 2553/ PN/20 12 ASSESSMENT YEAR : 2009 - 10 THE ASSISTANT COMMISSIONER OF INCOME TAX SATARA CIRCLE SATARA VS. LOKNETE BALASAHEB DESAI SAHAKARI SAKHAR KARKHANA LTD. A/P. - DAULATNAGAR (MARALI) TAL. - PATAN DISTT. - SATARA (APPELLANT) (RESPONDENT) PAN NO. AAAAB0362K APPELLANT BY: SHRI S.P. W ALIMBE RESPONDENT BY: SHRI PRASANNA JOSHI /SMT. DEEPA KHARE DATE OF HEARING : 2 3 - 04 - 201 4 DATE OF PRONOUNCEMENT : 25 - 04 - 201 4 3 ITA NO S. 2523 2525 2531 2541 2542 2551 2552 & 2553 /PN/2012 SHREE SOMESHWAR SAHAKARI SAKHAR KARKHANA LTD. AND O RS. PUNE ORDER PER R.S . PADVEKAR JM : - TH IS BATCH OF EIGHT APPEALS ARE FILED BY THE R EVENUE IN THE CASE S OF DIFFERENT CO - OPERA TIVE SUGAR FACTORIES CHALLENGING THE RESPECTIVE IMPUGNED ORDER S OF THE LD. CIT(A) - I II PUNE FOR THE A.Y S . 200 8 - 09 & 200 9 - 10 . 2. THE FACTS AS WELL AS ISSUES ARE IDENTICAL IN ALL THE APPEALS HENCE THIS BATCH OF APPEALS IS DISPOSED OF BY THIS CONSOLIDATED ORDER. THE FIRST ISSUE IS IN RESPECT OF T HE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT OF SALE OF SUGAR AT CONCESSIONAL RATES TO ITS MEMBERS AND SHAREHOLDERS . THE ASSESSING OFFICER MADE THE ADDITION ON THE REASON THAT THE SAME CANNOT BE TREATED A S BUSINESS EXPENDITURE AND REPRESENT DISTRIBUTION OF PROFITS AND THE LD. CIT(A) DELETED THE SAID ADDITIONS IN ALL THE CASES. THE ADDITIONS MADE BY THE ASSESSING OFFICER IN ALL THE APPEALS WHICH HAVE BEEN DELETED BY THE LD. CIT(A) CAN BE SUMMARIZED AS UNDE R: SL. NO. ITA NO. ISSUES ADDITION 1 2523/PN/2012 SALE OF SUGAR AT CONCESSIONAL RATES RS.75 34 594/ - 2 2525/PN/2012 SALE OF SUGAR AT CONCESSIONAL RATES RS.18 66 080/ - 3 2531/PN/2012 SALE OF SUGAR AT CONCESSIONAL RATES RS.18 96 817/ - 4 2541/PN/2012 SAL E OF SUGAR AT CONCESSIONAL RATES RS.17 16 141/ - 5 2542/PN/2012 SALE OF SUGAR AT CONCESSIONAL RATES RS.20 22 894/ - 6 2551/PN/2012 SALE OF SUGAR AT CONCESSIONAL RATES RS.1 78 14 465/ - 7 2552/PN/2012 SALE OF SUGAR AT CONCESSIONAL RATES RS.2 12 17 093/ - 8 2553/PN/2012 SALE OF SUGAR AT CONCESSIONAL RATES RS.45 61 038/ - 3. WE HAVE HEARD THE PARTIES. THE ISSUE S IN THIS CASE S IS WHETHER THE CIT(A) JUSTIFIED IN DELETING THE ADDITION MADE ON ACCOUNT OF SALE OF SUGAR AT CONCESSIONAL RATE S TO THE MEMBERS. WE F IND THAT THE IDENTICAL ISSUE 4 ITA NO S. 2523 2525 2531 2541 2542 2551 2552 & 2553 /PN/2012 SHREE SOMESHWAR SAHAKARI SAKHAR KARKHANA LTD. AND O RS. PUNE HA S COME BEFORE THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. KRISHNA SSK LTD. AND OTHERS IN CIVIL APPEAL NO. 6950 OF 2012 ETC. JUDGMENT DATED 25 - 09 - 2012 AND THE HON'BLE SUPREME COURT REMITTED THE MATTER BACK TO THE FILE OF THE CIT(A) FOR FRESH RE - CONSIDERATION BY GIVING THE FOLLOWING DIRECTIONS: THE QUESTION WHETHER THE ABOVE DIFFERENCE BETWEEN THE FAIR MARKET PRICE AND THE CONCESSIONAL PRICE SHOULD OR SHOULD NSOT BE ADDED TO THE TOTAL INCOME OF THE ASSESSEE SOCIETY NEE DS 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 IN THE IN THE CO - OPERATIVE SUGAR INDUSTRY? AND WH ETHER 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 PRICE 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. FOR THE ABOVE REASONS WE REMIT THE CASES TO CIT(A) TO DE - NOVO CONSIDE R THE MATTER. 4. IN THE PRESENT CASES ALSO THE RELEVANT FACTS ARE NOT ON RECORD AS IN THE CASE OF KRISHNA SSK LTD. AND OTHERS (SUPRA). WE THEREFORE RESPECTFULLY FOLLOWING THE JUDGMENT OF THE HON'BLE SUPREME COURT IN THE 5 ITA NO S. 2523 2525 2531 2541 2542 2551 2552 & 2553 /PN/2012 SHREE SOMESHWAR SAHAKARI SAKHAR KARKHANA LTD. AND O RS. PUNE CASE OF KRISHNA SSK LTD. AND O THERS (SUPRA) RESTORE THE ISSUE TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION IN THE LIGHT OF ABOVE DIRECTIONS GIVEN BY THE HON'BLE SUPREME COURT IN THE CASE OF KRISHNA SSK LTD. AND OTHERS (SUPRA). ACCORDINGLY THE RELEVANT GROUNDS TAKEN BY THE REVENUE ARE ALLOWED FOR THE STATIST ICAL PURPOSES IN ALL THE APPEAL . 5. THE NEXT ISSUE IS THE ADDITION ON ACCOUNT OF KHODKI CHARGES MADE BY THE ASSESSING OFFICER WHICH WAS DELETED BY THE LD. CIT(A) AND THIS ISSUES ARISES IN THE FOLLOWING APPEAL : SL. NO. ITA NO. NAME OF THE FACTORY ADDITION 1 2523/PN/2012 SHRI SOMESHWAR SAHAKARI SAKHAR KARKHANA LTD. PUNE RS.75 34 594/ - 6. WE HAVE HEARD THE PARTIES. WE FIND THAT THIS ISSUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HON'BLE HIGH COUR T OF BOMBAY IN THE CASE OF CIT VS. MANJARA SHETKARI S.S.K LTD. 301 ITR 191 (BOM.). WE THEREFORE CONFIRM THE ORDER OF THE LD. CIT(A) ON THIS ISSUE AND DISMISS THE RELEVANT GROUNDS TAKEN BY THE REVENUE. 7 . IN THE RESULT ITA NO. 2523/PN/2012 IS PARTLY AL LOWED FOR THE STATISTICAL PURPOSES AND ITA NOS. 2525 2531 2541 2542 2551 2552 & 2553/PN/2012 ARE ALLOWED FOR THE STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 25 - 04 - 201 4 SD/ - SD/ - ( R.K. PANDA ) ( R.S. PADVEKAR ) ACCOUNTANT MEMBER JUDICIAL MEMBER RK /PS PUNE DATED : 25 TH APRIL 2014 6 ITA NO S. 2523 2525 2531 2541 2542 2551 2552 & 2553 /PN/2012 SHREE SOMESHWAR SAHAKARI SAKHAR KARKHANA LTD. AND O RS. PUNE COPY TO 1 DEPARTMENT 2 ASSESSEE 3 THE CIT(A) - I II PUNE 4 THE CIT - III PUNE 5 THE DR ITAT B BENCH PUNE . 6 GUARD FILE. //TRUE COPY// BY ORDER PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL PUNE