2021 (8) TMI 23

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....spose of the appeal through this consolidated order for the sake of convenience. 3. First, we take up the appeal in ITA No. 1784/PUN/2017 for the assessment year 2014-15. 4. Briefly, the facts of the case are as under:- The appellant is a cooperative society registered under the Maharashtra Co-operative Society Act. It is engaged in the business of manufacturing of white crystal sugar. The return of income for the assessment year 2014-15 was filed on 30.09.2014 declaring loss of Rs. 2,80,33,642/-. Against the said return of income, the assessment was completed by the Assistant Commissioner of Income Tax, Circle-1, Kolhapur ('the Assessing Officer') vide order dated 22.12.2016 passed u/s. 143(3) of the Income Tax Act, 1961 ('....

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.... rate out of the business expediency considerations. Finally, it is submitted that the issue may be restored to the file of the Assessing Officer on the lines of the decision of the Co-ordinate Bench of the Tribunal in the case of Majalgaon Sahakari Sakhar Karkhana Ltd. vs. ACIT in ITA No. 308/PUN/2018 vide order dated 14.03.2019. 9. On the other hand, Ld. Sr. DR has no serious objection to remand the matter on the lines indicated in the decision of the Co-ordinate Bench of the Tribunal in the case of Majalgaon Sahakari Sakhar Karkhana Ltd. (supra). 10. We heard the rival submissions and perused the material on record. The first issue in the present appeal relates to the allowability of sugarcane price paid over and above FRP price. The A....

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....appellant society had not paid any excess price for purchase of sugarcane from its members or non-members over and above the FRP price declared by the Central Government. As stated by us earlier, the disparity between the price paid on sugar and the price payable under FRP only on account of above two factors i.e. (i) harvesting and transport expenses and (ii) payment of Rs. 5000 per MT against supply made in the earlier years. Therefore, it is bounding duty of the Assessing Officer to examine the facts and circumstances under which the harvesting and transport expenses was paid to the farmers whether the payments were made over and above FRP exclusively for the purpose of business. The Assessing Officer cannot jump to a conclusion that the....

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....sallowance of sale of sugar at concession rates to the members. The issue of disallowance on account of sale of sugar at concession rate to the members is covered by the decision of the Hon'ble Apex Court in the case of Krishna Sahakari Sakhar Karkhana (supra) wherein the issue was remanded back to the file of the Ld. CIT(A) with a direction to address the question raised by the Hon'ble Supreme Court. The Ld. CIT(A) though adverted to the decision of the Hon'ble Apex Court in the case of Krishna Sahakari Sakhar Karkhana (supra) had not addressed the question raised therein with reference to material on record. Therefore, this issue also requires to be remanded to the file of the Assessing Officer with a direction to address the ....