SHREE PANDURANG SAHAKARI SAKHAR KARKHANA LTD,,SOLAPUR vs. ASSISTANT COMMISSIONER OF INCOME TAX,, SOLAPUR

Shri Pratik Sandbhor appearing on behalf of the assessee submitted that the assessee is engaged in manufacturing of white sugar. The ld. AR submitted that the solitary issue raised in the appeal by the assessee is against the addition on account of payment of excess cane price paid by the assessee to the farmers, i.e. the price over and above the Statutory Minimum Price (SMP) fixed by State Government for purchase of cane. The ld. AR submitted that the issue raised in present appeal by the assessee has already been considered and adjudicated by the Co-ordinate Bench of Tribunal in bunch of appeals with the lead case DCIT vs. Vasant Rao Dada Patil SSK Ltd., ITA Nos.50 to 52/PUN/2012 for the assessment years 1992-93, 1994-95 & 1996-97, respectively vide order dated 20.03.2019. The Tribunal has restored the issue back to the file of Assessing Officer for de-novo adjudication.

Shri Vishwas Mundhe representing the Department fairly submitted that the issue of excess cane price paid by the assessee sugar factories to the farmers has been restored back to the file of Assessing Officer by the Tribunal in bunch of appeals. Therefore, this issue can also be restored to the file of Assessing Officer with similar directions.

Both sides heard. Orders of the authorities below perused. The assessee is a Co-operative Society engaged in manufacturing of sugar. The assessee is purchasing sugarcane from its members and non-members. The assessee has made payment for purchase of sugar cane from farmers at price higher than the Fixed and Remunerative Price (FRP) of the Government. The authorities below have disallowed the difference between the price paid by the assessee and FRP fixed by the Government. The Co- ordinate Bench of Tribunal in the case of DCIT vs. Vasant Rao Dada Patil