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Income Tax Appellate Tribunal, Delhi Bench “F”, NEW DELHI
Before: SHRI AMIT SHUKLADr. B.R.R. KUMAR
PER B.R.R.KUMAR, ACCOUNTANT MEMBER :
Both appeals have been filed by the assessee against the order of the ld. CIT(A)-Moradabad, dated 27.06.2017.
Closing stock Valuation : Addition of Rs. 366,129/- u/s 145A on account of non inclusion of education cess and higher education cess on excise duty on closing stock of sugar and molasses was made by the AO which has been upheld by the Ld. CIT(A) based on the orders of the Ld. CIT(A) for the A.Y. 2012-13. We also find that the Ld. CIT(A) has deleted the similar addition for the A.Y. 2009-10. We also find that the benefit of addition on account of closing stock has not been given in the 2 5853/Del/2017 Kisan Sahkari Chini Mills Ltd. subsequent year. Since, it is a revenue neutral exercise wherein the tax rate have not been in change for the years in question who hereby direct the authorities to consider the close stock determined as the opening stock of the subsequent year.
Appeal of the assessee on this ground is allowed.
Interest expenses of Rs. 3.12 crores:
It was argued that the AO has also erred in treating of Rs. 3,12,74,585/- interest earned from Coop. institution, Coop Society & bank as income from other sources. The funds has been kept/given to other sugar factories during the course of business and while carrying out the business hence it is a income from business and not income from other sources. It is therefore requested that the interest earned be treated as income from business.
We find that this issue has been adjudicated against the assessee in their own case in for the A.Y. 2010-11 vide order dated 27.02.2017. Based on a judgement of the Hon’ble Supreme Court in the case of Totagar’s Cooperative vs. ITO 322 ITR 283 (SC) Both the parties have not disputed this fact. Hence, the appeal of the assessee on this ground is dismissed.
In the result, the appeal of the assessee is partly allowed.
Order pronounced in open court on this 17 day of November, 2021.