TaxTMI 
TaxTMI 
2015 (3) TMI 106
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.... appeal was admitted by a Co-ordinate Bench on the following substantial questions of law:- "(1). Whether on the facts and circumstances of the case the Tribunal was legally justified in upholding the order of the CIT(A) in deleting the addition made on account of closing stock amounting to Rs. 2,85,81,310/-? (2). Whether on the facts and circumstances of the case the Tribunal was legally justified in upholding the order of the CIT(A) in deleting the addition on account of under statement of sale proceeds of baggase, disallowance on account of treatment of capital expenses as revenue expenses in molasses fund? (3). Whether on the facts and circumstances of the case the Tribunal was justified in directing the Assessing Officer to allow de....
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....d did not result any evasion of tax. Thus, issue was decided in favour of assessee. By following the earlier order (supra), we find no reason with the impugned order passed by the Tribunal and the same is hereby sustained. Hence, answer to the substantial question of law is in favour of the assessee and against the department. Question No.2. It is pertaining to the sale of the bagasse to its sister concern. The A.O. made addition of Rs. 1,07,92,714/- on estimate basis pertaining to the sale price to M/s. U.P. Straw and Agro Products Ltd., a sister concern of the assessee. The A.O. observed that the sale rate to the sister concern was lower than the average rate in all other cases. The CIT(A) as well as the Tribunal have deleted the additi....
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....nt year 1984-85 onwards then assessment order will be rectified to that extent. But both the appellate authorities have observed that the amount was returned back pertaining to the gratuity but without mentioning any reason. By considering the totality of the facts and circumstances, it may be mentioned that deduction of gratuity is allowable as per Section-43B on the basis of actual payment. The A.O., in its order has observed that if this amount is pertaining to the assessment year 1984-85 onwards, then assessment order will be rectified on this point to that extent. None of the parties was able to tell whether any rectification was made out or not. In view of the above, we set-aside the impugned orders passed by the appellate authoriti....