TaxTMI 
TaxTMI 
2025 (3) TMI 1902
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....essional Rate. 3. The appellant craves for the leave, add, alter, amend, modify and delete any or all the above grounds of appeals before or at the time of hearing." Submission of ld.AR : 2. Ld.AR submitted that assessee has filed a petition before the Assessing Officer under section 155(19) of the Act. However, the said petition is pending before the Assessing Officer. Therefore, ld.AR requested to set-aside the issue to the AO for re-examination in the light of Section 155(19) of the Act. Ld.AR filed a written submission which is reproduced as under : "This is the second time, the issue is travelled to Hon ITAT Bench. Original assessment order was passed in 2015. After that the matter travelled to CIT(A) and later at Hon. ITAT Bench. In 2019, Hon ITAT Bench set aside the issue to AO with a direction that AO is required to consider directives given in the Hon SC Judgement in the matter of CIT Vs Tasgaon Taluka SSK Ltd (2019) dt. 05.03.2019 Later on, in 2021, AO passed order u/s 143(3) r.w.s. 254 r.w.s. 144B Prayer:- -In Union Budget 2023, Hon. Finance Minister proposed to provide an opportunity to sugar cooperati....
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....ilarly, AO made addition of Rs. 71,99,261/- on account of sale of sugar at concessional rates to its Members. Aggrieved by these additions, Assessee filed appeal before the ld.CIT(A). 4.1 The ld.CIT(A) confirmed the assessment order, hence, Assessee filed appeal before this Tribunal. 4.2 Thus, there are two issues, which are as under : * Excess cane price paid to farmers over FRP * Sale of Sugar at concessional rate to its Members We will discuss each issue hereunder : Excess cane price paid to farmers over FRP : 5. As per the assessment order, for sugar season 2010-11, the Assessee has paid Rs. 2,250/- per metric ton to its Members and Rs. 1,800/- per metric ton to Non-members for purchase of Sugarcane. For Sugar Season 2011-12, Assessee has paid Rs. 2,450/- per metric ton to its Members for purchase of Sugar Cane. The assessing officer in the assessment order stated that FRP fixed by Central Government for purchase of Sugarcane was Rs. 1801.90 per metric ton. However, the Assessing Officer has also observed that Maharashtra State Government has fixed the price at Rs. 2450/- per metric ton, the said price is called "State Advised Price". The Assess....
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....ose of the appeal on merits. In fact with effect from 1st June, 2001 the power of the CIT(A) to set aside the order of the Assessing Officer and restore it to the Assessing Officer for passing a fresh order stands withdrawn. Therefore, it would be noticed that the powers of the CIT(A) is coterminous with that of the Assessing Officer i.e. he can do all that Assessing Officer could do. Therefore just as it is not open to the Assessing Officer to not complete the assessment by allowing the assessee to withdraw its return of income, it is not open to the assessee in appeal to withdraw and/or the CIT(A) to dismiss the appeal on account of non-prosecution of the appeal by the assessee. This is amply clear from the Section 251(1)(a) and (b) and Explanation to Section 251(2) of the Act which requires the CIT(A) to apply his mind to all the issues which arise from the impugned order before him whether or not the same has been raised by the appellant before him. Accordingly, the law does not empower the CIT(A) to dismiss the appeal for non-prosecution as is evident from the provisions of the Act." Unquote. 6.1 Thus, the Hon'ble Bombay High Court has categorically held that ld.CI....
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....27 taxmann.com 162 (SC)(supra) vide order dated 25.09.2012 had given specific directions, the relevant paragraph as under : Quote "The assessee(s) is a Co-operative Society engaged in the business of production of sugar from sugarcane and sale thereof. Assessee(s) buys sugarcane from its Members. Every month and on Diwali, assessee(s) sells certain quantity of sugar (final product) at concessional rate to farmers/cane growers/Members. The difference between the average price of sugar sold in the market and the price of sugar sold by the assessee(s) to its Members at concessional rate is sought to be taxed by the Department under the Head 'Appropriation of Profit'. The question, whether the above difference between the fair market price and the concessional price should or should not be added to the total income of the assessee(s) Society, needs to be re-looked by Commissioner of Income Tax (Appeals) [for short, 'CIT(A)']. Apart from the afore-stated question, CIT(A) would take into account, whether the above-mentioned practice of selling sugar at concessional rate has become the practice or custom in the Co-operative Sugar Industry?; and whether an....
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....iety, sugar factories should sell the sugar at concession rate to their members and employees as per the directions given by the State Government. It may be noted that, action can be taken against Board of Directors of the factories not obeying these directions under Section 88 of the Maharashtra State Co-operative Societies Act, 1960. Following are the directions as per the Section 79(A) of Maharashtra Co-operative Societies Act, 1960: 1. The factories should stop the current practice of selling the sugar at concession rate to their members. Instead, sugar at concession rate can be made available through following method. 2. The rate for concession sugar sale by a Co-op sugar factory to its members shall be at the rate of levy sugar plus excise duty on free sugar. 3. A Co-op sugar factory shall sell maximum 5 kg sugar per month at concession 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 rate shall be applicable only to....
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....relevant paragraphs of ld.CIT(A)'s order. The ld.CIT(A)/AO has not answered following questions :- * How many members have been provided sugar at concessional rate? * Had those members supplied sugar cane to the factory? * Had assessee factory crushed more than 50% in the previous season? * What is the Rate at which the sugar was sold at concessional rate and What was the levy sugar rate and excise duty for that year? 8.6 All the above questions are relevant to decide the issue of sale of sugar at concessional rate. However, levy sugar rate and excise duty has not been brought on record. 8.7 Section 79A of the Maharashtra Co-operative Societies Act, 1960 is reproduced here as under : "79- A. Government's powers to give directions in the public interest, etc.- (1) If the State Government, on receipt of a report from the Registrar or otherwise, it satisfied that in the public interest or for the purposes of securing proper implementation of co-operative production and other development programs approved or undertaken by Government, or to secure the proper management of the business of the society generally, or for preven....