2022 (7) TMI 1332 - AT - Income Tax

Excess cane price paid to members/non members as well as sale of sugar at concessional rate - HELD THAT - Issues are no more res-integra as the tribunal s coordinate bench s recent order in The Malegaon Sahakari Sakhar Karkhana Ltd. 2021 (10) TMI 1357 - ITAT PUNE has restored the same back to the Assessing Officer for his afresh appropriate adjudication. Ordered accordingly. This assessee s former twin substantive ground are allowed for statistical purposes on the very terms. Assessee appeals are allowed for statistical purposes.

Summary

Issues:
1. Disallowance and addition of excess cane price paid to members and non-members.
2. Disallowance and addition of excess cane price paid to members and non-members in an enhanced amount.
3. Disallowance and addition of amount on account of sale of sugar at a concessional rate.

Analysis:

Issue 1: Disallowance of Excess Cane Price
The assessee appealed against the disallowance and addition of Rs.14,03,46,129 on account of excess cane price paid to members and non-members. The tribunal noted that the issue of excess cane price payment had been addressed by various co-ordinate benches previously. Referring to a specific case, the tribunal directed the assessing authority to re-adjudicate the matter in accordance with the law. Consequently, the tribunal ordered in favor of the assessee, allowing the appeal for statistical purposes.

Issue 2: Enhanced Disallowance of Excess Cane Price
In a separate appeal, the assessee challenged the enhanced disallowance and addition of Rs.51,84,26,454 concerning excess cane price paid to members and non-members. The tribunal, following the same reasoning as in the first issue, ordered a similar course of action. The tribunal directed the matter to be reconsidered by the assessing authority in light of the law, thereby allowing the appeal for statistical purposes.

Issue 3: Disallowance of Sale of Sugar at Concessional Rate
The third issue pertained to the disallowance and addition of Rs.1,42,43,380 on account of the sale of sugar at a concessional rate. The tribunal upheld the decision of the lower authorities regarding this matter. The tribunal ordered a similar course of action as in the previous issues, directing the assessing authority to re-examine the issue in accordance with the law. Consequently, the appeal was allowed for statistical purposes.

In conclusion, the Appellate Tribunal ITAT Pune addressed multiple issues related to disallowances and additions in the appeals filed by the assessee for assessment years 2011-12 to 2014-15. The tribunal provided detailed directions for the reassessment of the disputed amounts, ensuring compliance with the legal provisions. The appeals were allowed for statistical purposes, and the orders were pronounced in open court on 28th July 2022.