SHRI VITTHAL SSK LTD.,SOLAPUR vs. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1, SOLAPUR

This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 14.03.2023 for the assessment year 2009-10.

Briefly, the facts of the case are that the appellant is a Co- operative Society engaged in the business of running of sugarcane factory. The Return of Income for the assessment year 2009-10 was filed on 29.09.2009 and the same was revised on 08.06.2010 at Rs.Nil income after claiming set off of the brought forward losses. Against the said return of income, the assessment was completed by the Dy. Commissioner of Income Tax, Circle-1, Solapur (‘the Assessing Officer’) vide order dated 16.12.2011 passed u/s 143(3) of the Income Tax Act, 1961 (‘the Act’) at a total income of Rs.115,62,56,550/-. While doing so, the Assessing Officer made following disallowances :- 01 Disallowance u/s 37(1) excessive and 114,74,95,731/- unreasonable cane purchase price paid for purchase of Sugarcane 02 Addition on account of Sale of Sugar at 69,86,180/- concessional rate 03 VSI contribution 17,74,638/- 3. Being aggrieved by the above disallowances, an appeal was filed before the NFAC, who vide impugned order deleted the addition on account of excess and unreasonable sugarcane purchase price of Rs.114,74,95,731/- relying on the Budget Speech of Hon’ble Finance Minister.