9911796707
TMI Blog2025 (3) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... hall file all necessary details before the CIT(A). Accordingly, grounds of appeal raised by the Revenue are allowed for statistical purpose. X X X X Extracts X X X X X X X X Extracts X X X X ..... A.Y.2018-19. The AO carefully examined the matter based on the practices adopted by the State Government as per its Policy and made an addition for the Differential Amount between the Market Price and the Concessional Rate. 2.2 It is evident that the State Government has already enacted legislation under section 79(A) of the Maharashtra Co-operative Societies Act, 1960 to discourage the practice of selling sugar at concessional rates. Additionally, the Hon'ble Supreme Court's decision in CIT Vs. Krishna SSK [2012] 211 Taxmann 109 (SC), along with the provisions of the Maharashtra Co-operative Societies Act, 1960 and the circular dated 01.03.2006 issued by the Sugar Commissioner, Pune have provided clear guidelines on the matter. Submission of ld.AR : 3. The ld.Authorised Representative(ld.AR) for the assessee filed a paper book. Ld.AR submitted that this issue is already covered by the decision of Hon'ble Jurisdictional High Court in the case of Assessee in Income Tax Appeal(Lodg.) No.2726 of 2009, dated 01.02.2010. 3.1 Ld.AR submitted that the issue had attained finality by Hon'ble Bombay High Court's order in assessee's own case in Income Tax Appeal(Lodg.) No.2726 of 2009, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The ld.CIT(A) deleted the addition following the decision of Hon'ble Jurisdictional High Court in the case of Terana SSK Ltd. 4.8 Revenue has merely pleaded that the case may be set-aside as the appeal for A.Y.2015-16 has been set aside. Revenue relied on the Circular of the Maharashtra Sugar Commissioner who has laid down specific criteria and also fixed the rate and quantity which can be given to members. Revenue has referred certain case laws in the grounds of appeal without quoting citation. 4.9 It is noted that ld.AR submitted that it is a customary practice to sale sugar at concessional rate to the Farmers who sell sugar cane to Assessee. Ld.AR further submitted that this is a practice followed by all sugar factories. Ld.AR also submitted that Assessee has passed a resolution to that effect. Ld.AR filed copy of the resolution dated 14.02.1990 in paper book. As per the said resolution of the Assessee-Factory, concessional sugar is given only to the members. Therefore, Assessee has not explained how concessional sugar has been provided to non-members. Ld.AR also submitted that even State Government has approved the said practice. Ld.DR has not rebutted these submissions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th basis. We, therefore, keep all questions of law and facts open. Needless to add, the CIT(A) would give liberty to both sides to produce relevant documents. For the above reasons, we remit the cases to CIT(A) to de-novo consider the matter." Unquote 4.11 In this context, it is important to refer to the circular of the Sugar Commissioner - Maharashtra State vide Circular No: "Outward No:CS/Admin-1/Circular/05 dated 01.03.2006". The Sugar Commissioner Maharashtra State has elaborately discussed the sale of sugar at concessional rate and given directions. The said circular is reproduced as under : "Commissioner of Sugar Maharashtra Rajya Sakhar Sankul, Shivaji Nagar, Pune-5 Outward No:CS/Admin-1/Circular/05 Date:01st Date March, 2006 CIRCULAR Sub: Sale of Sugar at concessional rate to members and employees of sugar factories of State To give directions as per section 79A of the Maharashtra Co-operative Societies Rules, 1960 Ref: Govt. Letter SSK1005/25859/Letter No. 345/25S dated 14th February, 2006 Terms and conditions and procedure to be followed for sale of sugar at concession rate was fixed through Circular from this office dated 13th April, 2005 and 27th May, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion rate to its member. 4. This concession will be limited only to the members and employees. 5. If a factory has crushed less than 50% in the previous season, then it will not be eligible for concession sale of sugar. 6. The sale of sugar at concession shall be applicable only to those members who have supplied their cane to factory as per the rules of the factory." 4.12 The Sugar Commissioner Maharashtra Government gave the directions to all sugar factories as per Section 79(A) of Maharashtra Co-operative Societies Act, 1960. The Sugar Commissioner gave the direction that Sugar Factories shall sale maximum 5 kgs of sugar per month at concessional rate to its members only. The rate shall be @ levy sugar (+) excise duty. The sale of sugar at concessional rate shall be applicable only to those members who have supplied their Sugar Cane to the factory. 4.13 The Hon'ble Supreme Court in the case of Krishna SSK Ltd.,(supra) had set-aside the issue with specific direction. One of the Directions of Hon'ble Supreme Court(supra) was to find out whether any resolution passed by State Government. Therefore, the Circular issued by Sugar Commissioner, Maharashtra State in 2006 needs t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stification, fail to comply with this order, remove the members, appoint other persons as members and declare them disqualified as provided in clause (a) above: Provided that, before making any order under this sub-section, the Registrar shall give a reasonable opportunity of being heard to the person or persons concerned and consult the federal society to which the society is affiliated, Any order made by the Registrar under this section shall be final." 4.14 Thus, the Commissioner of Sugar had issued Circular dated 01.03.2006 in public interest. One arm of the Law cannot be used to defeat purpose of another arm of the Law. In this case, the Ld.CIT(A) failed to consider these facts in the light of decision of Hon'ble Supreme Court in the case of Krishna SSK Ltd.(supra). 4.15 Ld.CIT(A) has not followed the directions of Hon'ble Supreme Court in Krishna SSK Ltd.,(supra). However, ld.CIT(A) has relied on the decision of Hon'ble Bombay High Court in the case Terana Sahakari Sakhar Karkhana Ltd. We have perused the order of Hon'ble High Court in the case of Terana Sahakari Sakhar Karkhana Limited, [2008] 301 ITR 222 (Bombay), dated 22.10.2007. The Assessment Year involved in Tera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erring to the decision of Hon'ble Supreme Court in the case of Krishna SSK Ltd.,(supra). Ld.CIT(A) erred in not appreciating Hon'ble Supreme Court's decision in the case of Krishna SSK Ltd.,(supra). 4.19 The ld.AR relied on the order of Hon'ble Bombay High Court in the case of CIT Vs. Tatyasaheb Kore Warana Sahakari Sakhar Karkhana Ltd., in Income Tax Appeal(Lodg.) No.2726 of 2009, dated 01.02.2010.The Hon'ble Bombay High Court in the case of CIT Vs. Tatyasaheb Kore Warana Sahakari Sakhar Karkhana Ltd., in Income Tax Appeal(Lodg.) No.2726 of 2009(supra), has relied on the decision of Hon'ble Bombay High Court in CIT Vs. Kisanveer Satara Sahakari Sakhar Karkhana Limited in ITA 930/2008. In the case of Kisanveer Satara SSK Ltd.(supra), Hon'ble High Court followed the decision of CIT Vs. Terna Shetkari Sahakari Sakhar Karkhana Ltd. reported in [2008] 301 ITR 222(Bom). We have already discussed the decision of Hon'ble High Court in the case of Terana SSK Ltd(supra) and distinguished it on facts. The most important fact is that after the decision of Hon'ble Supreme Court in the case of Krishna SSK Ltd., dated 25.09.2012, the decision of Hon'ble Bombay High Court will not be applicable. ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
