2023 (6) TMI 399

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....- 3. Assessee is a Co-Operative Society stated to be engaged in the business of manufacturing and dealing in sugar and its by-products. Assessee electronically filed its return of income for the Assessment Year 2008-09 on 29.09.2008 declaring total loss of Rs. 50,61,55,729/-. The case of the assessee was selected for scrutiny and thereafter assessment was framed under Section 143(3) of the Income-tax Act, 1961 [hereinafter referred to as "the Act"] vide order dated 28.12.2010 and the total loss was determined at (-) Rs. 22,30,11,733/-. Aggrieved by the order of the Assessing Officer, the assessee carried the matter in appeal before the CIT(A) who vide order dated 20.06.2019 in appeal No.CIT(A)-Vadodara- 3/10006/2011-12 granted substantial ....

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....e matter in appeal before the CIT(A). Before the CIT(A), the assessee inter alia submitted that the farmer/member are made payment for the purchase of sugarcane on adhoc basis in installment and the final payment is made to the member only after the determination of Fair Market Price (FMP) by the Government. It was submitted that the final price for the sugar season 2006-07 was decided on 05.12.2007 and hence after fixing the FMP the payment of the sugarcane was made in the year 2007-08. It was, therefore, submitted that the expenses were not of prior period expenses. 4.3 The CIT(A), after considering the submissions of the assessee and while deciding the issue in favour of the assessee, has given a finding that the actual FMP of the sugar....

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....g the addition has given a finding that the assessee operates in the agriculture sector and deals in seasonal crop and the price of which is controlled by the Government. He has further given a finding that the actual Fair Market Price of the sugar was decided on 05.12.2007 which was much after the completion of sugar season of 2006-07 and the payments made thereafter cannot be considered to be prior period expenses more so when the genuineness of the payments to the farmers has not been doubted by the Revenue. Before us, Revenue has not pointed out to any fallacy in the findings of the CIT(A). In such a situation, we find no reason to interfere with the order of the CIT(A) and thus this ground raised by the Revenue is dismissed. 5. Ground....