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TMI Blog2016 (6) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... VOCATE (PER : HONOURABLE MR.JUSTICE AKIL KURESHI) The petitioner is a sugar co-operative society and has challenged the notice for re-opening assessment issued by the Assessing Officer for the assessment year 2010-11. The Assessing Officer has recorded reasons for re-opening which read as under: "The Assessee is a co-operative society registered under the Gujarat C0-operative Society Act, enga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee has shown purchase of sugarcane to the tune of Rs. 278,6,2,33,571/-. Therefore, the assessee has paid excess purchase price of Rs. 135,21,00,277/- than the SMP fixed by the Government. (Rs. 278,62,33,571/- less Rs. 143,41,33,294/-.) On plain perusal of the above figures, it is noticed that the assessee has not followed system of SMP while payment for sugarcane purchase from its members. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lance-sheet that no such provision is made. Section 37(1) of the I.T. Act lays down the expenditure that is deductible. Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expediture or personal expenses of the assessment), laid out or expended wholly and exclusive for the purpose of the business or profession shall be allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed as "business expenditure" under section 37 of the Act, while computing profits and gains of business or profession of the assessee. In view of the above, I have reasons to believe that amounts of Rs. 135,21,00,277/- incurred by the assessee for purchase of sugarcane over and above the SMP determined by the Central Government is escaped assessment within the meaning of section 147 of the I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or forming the opinion that the income chargeable to tax had escaped the assessment. 3. The said judgment of this Court in the case of Shri Chalthan Vibhag Khand Udyog Mandli Ltd. (supra) was followed in lateron judgment dated 2.2.2016 in the case of Shri Narmada Khand Udhyog Sahakari Mandli Ltd. vs. Income Tax Officer. Both sides agree that the issues are identical. Without recording separate re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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