THE COMMISSIONER OF INCOME TAX-I vs. DR. BABURAO BAPUJI TANPRE SAHAKARI SAKHAR KARKHANA LTD

ORDER : 1] Perused   the   order   passed   by   the   Commissioner   for Income Tax and the Income Tax Appellate Tribunal. 2] In the light of our orders in the case of several other sugar factories and the issue being common, this appeal is admitted on the following substantial questions of law:­ ­  2 ­ A) Whether on the facts and in the circumstances of the case and in law, the Hon.Tribunal did not err in holding that the disallowance made by the Assessing   Officer   on   account   of   excess   cane price   paid   to   the   members   and   non­members   was not justified and in holding that such payments could not be disallowed either u/s 37(1) or u/s 40A (2)(b) of the Income Tax Act, 1961 ? F)

Whether   on   the   facts   and   in   the circumstances   of   the   case   and   in   law,   the Hon.Tribunal   did   not   err   in   deleting   the addition   made   by   the   Assessing   Officer   on account of difference between the market price of   sugar   and   the   concessional   price   at   which sugar was sold to the cane growers by holding that   no   income   accrued   to   the   assessee   on concessional sales and, therefore, the assessee was   not   liable   to   be   assessed   on   the difference ? 3] Similar substantial question of law was dealt with and considered by us in Tax Appeal No.56 of 2011 and we have, by relying upon the judgment of the Hon'ble Apex ­  3 ­ Court,   dated   25th   September,   2012,   passed   in   Special Leave   to   Appeal   (Civil)   No.8590/2010   and   connected matters, allowed the appeals and remanded the case to the Commissioner   of   Income   Tax   (Appeals)   for  de­novo consideration of the above substantial questions of law.

Similar order can be passed in this appeal as well. 4] Hence, we pass the following order:­ a] The appeal is allowed. b] The   order   passed   by   the   Income   Tax   Appellate Tribunal so also by the Commissioner of Income Tax (Appeals) is set aside. c] The matter is remanded to the Commissioner of Income Tax (Appeals) for de­novo consideration. d] The Commissioner of Income Tax (Appeals) shall decide   the   same   on   merits   and   in   accordance   with law,   uninfluenced   by   any   prior   findings   and conclusions. e] In the circumstances, there shall be no order as to costs. (RAVINDRA V. GHUGE, J.)    (S.C. DHARMADHIKARI, J.) ndk/c172145