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TMI Blog2021 (10) TMI 954X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the case and in the interest of justice, we deem it proper to restore the issue to the file of the CIT(A) with a direction to find out as to what is the fate of the issue in A.Y.s 2008-09 and 2011-12. He shall decide the issue on the basis of the order for A.Y.s 2008-09 and 2011-12 which has been followed by the CIT(A) and as per fact and law, after giving due opportunity of being heard to the assessee. We hold and direct accordingly. The Grounds of appeal No. 1 and 2 raised by the assessee are accordingly allowed for statistical purposes. Correct head of income - AO treating interest earned from Cooperative Societies and Bank as income from other sources instead of business income - HELD THAT:- This ground of appea taken by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... That the learned CIT (Appeals)Moradabad has also erred on facts and in law in confirming the action of A.O. in not allowing the benefit of education cess and higher education cess on free and levy sugar of ₹ 364741.00 and ₹ 183111.00 on molasses respectively paid before the due date of filing the return. Without prejudice to the above the learned A.O. has also erred on facts and in not allowing the benefit of education cess and higher education cess amounting to ₹ 379243.00 for which the addition was made last year. 4. Facts of the case, in brief, are that the assessee derives income from the business of manufacturing and trade of sugar and its by-products. It filed its return of income on 22nd September, 2010 de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted by ₹ 5,77,154/- (202510 x 2.85) and is liable to be added to the total income. 5. Similarly, he noted that the prevailing rate of excise duty on levy sale sugar during the year under consideration is ₹ 63.86 per quintal. This comprises of excise duty: ₹ 62/-, education cess: ₹ 1.24 and higher education cess: ₹ 0.62, totalling to ₹ 63.86 per quintal. However, the assessee has valued the closing stock of levy sugar by including only excise duty by adopting a rate of ₹ 62/- per quintal. Therefore, the valuation of closing stock of levy sugar as on 31/03/2010 has been understated by ₹ 1.86 per quintal (63.86 - 62). The closing stock of levy sugar as on 31/03/2010 was 51,688 quintals. Thus, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted that the opening value of the stock for the next year should be amended accordingly. 8. Aggrieved with such order of the CIT(A), the assessee in appeal before the Tribunal. 9. We have heard the rival arguments made both the sides and perused the record. We find, the AO, applying the provisions of section 145A, made addition of ₹ 9,81,560/- on account of undervaluation of closing stock of free sugar, levy sugar and molasses on account of non-inclusion of education cess and higher education cess. We find, the ld. CIT(A), following the order of his predecessor for A.Y. 2011-12 and the assessment order for A.Y. 2008-09, upheld the action of the AO. However, he directed the AO to consider the opening value of the stock for the n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the above submission by the ld. Counsel for the assessee and in absence of any objection from the side of the ld. DR, the ground No. 3 raised by the assessee is dismissed. ITA No. 1105/Del/2017 (A.Y. 2012-13) 12. The ground of appeal No. 1 raised by the assessee reads as under:- 1. That the learned Commissioner of Income Tax (Appeals) Moradabad has erred on facts and in law in confirming the action of A.O. in making addition ₹ 509007.00 in the closing stock of sugar molasses on account of education cess and higher education cess on excise duty u/s. 145A of the Income-tax Act, 1961. 13. After hearing both the sides, we find the above ground is identical to ground of appeal No. 1 and 2 in ITA No. 1104/Del/2017. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 98788.00 being interest earned from Cooperative Societies and Bank as income from other sources instead of business income. 17. The ld. Counsel for the assessee fairly conceded that the above ground is decided against the assessee by decision of the Tribunal vide ITA No. 3634/Del/2014, order dated 4th May, 2007 for A.Y. 2001-02. In absence of any objection from the side of the ld. DR to the above submission of the ld. Counsel, ground No. 3 raised by the assessee is dismissed. 18. Ground No. 4 being general in nature is dismissed. 19. In the result, both the appeals filed by the assessee are partly allowed for statistical purposes. The decision was pronounced in the open court on 13.10.2021. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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