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TMI Blog2021 (8) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... The Hon'ble Bombay High Court in the case of CIT vs. Manjara Shetkari Sahakari Sakar Karkhana Ltd. [ 2007 (8) TMI 260 - BOMBAY HIGH COURT] held that the differential price cannot be disallowed merely on the ground that it is appropriation of profits without giving a finding as to whether there is any resolution passed authoring the society to pay such excess price. Also in the case of CIT vs. Aruna Sunrise Hotels Ltd., [ 2018 (5) TMI 156 - MADRAS HIGH COURT] held that the excess price determined under sugarcane control is to be treated as allowable expenditure exclusively and for the purpose of business. Therefore, the finding of the lower authorities cannot be sustained. In our considered opinion, the matter should be remanded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee society. Thus, this ground appeal also stands partly allowed for statistical purposes. - ITA Nos. 1784 & 2227/PUN/2017 - - - Dated:- 26-7-2021 - Inturi Rama Rao, Member (A) And S.S. Viswanethra Ravi, Member (J) For the Appellant : M.K. Kulkarni For the Respondents : Deepak Garg ORDER Per Inturi Rama Rao, AM These are the appeals filed by the assessee directed against the separate orders of Ld. Commissioner of Income Tax (Appeals)- 1/2, Kolhapur ('CIT(A)' for short) dated 04.05.2017 and 21.07.2017 for the assessment years 2014-15 and 2013-14 respectively. 2. Since the identical facts and issues are involved in both the appeals, we proceed to dispose of the appeal through this consolidated order for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after referring to the decision of the Hon'ble Supreme Court in the case of CIT vs. Krishna Sahakari Sakhar Karkhana, 211 taxmann.com 109 (SC). 6. Being dissatisfied with the order of the Ld. CIT(A), the appellant is before us in the present appeal. 7. It is submitted that Review Petition is pending before the Hon'ble Supreme Court against the decision in the case of CIT vs. Tasgaon Taluka Sahakari Sakhar Karkhana Ltd., 412 ITR 420. It is further submitted that the FRP price fixed by the Central Government in connotation with stake holder. Therefore, it cannot be termed as unreasonable. 8. As regards to the concessional rate of sugar price, the Ld. AR argued that the sugar was sold at concessional rate out of the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent to prove this allegation of appropriation of profit by leading necessary evidence on record by undertaking such an exercise of determining the existence of profit and other condition by reference to the Resolution passed by the Board of Co-operative Society or approval of the State Government to make the payment over and above excessive of FRP price. Apparently, in the present case, the Assessing Officer had not undertaken any such exercise. On perusal of the assessment order, it is clear that the alleged excess price had arisen on account of two factors (i) harvesting of transport expenses and (ii) payments of ₹ 5000 per MT against such supply of sugarcane in the earlier years. Prima-facie, it is clear that the appellant society ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Therefore, the finding of the lower authorities cannot be sustained. In our considered opinion, the matter should be remanded back to the file of the Assessing Officer in order to meet the ends of justice to give a finding whether the excess price paid over and above FRP is out of the business expediency or appropriation of profit. If it is found that the excess payment was paid only out of business expediency consideration and the same should be allowed as deduction. Thus, this ground of appeal is remanded to the file of the Assessing Officer for fresh adjudication on the lines indicated above. Accordingly, this ground of appeal stands partly allowed for statistical purposes. 11. The other ground of appeal relates to the disallowance o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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