SHRI GANESH SSK LTD,AHMEDNAGAR vs. D.C.I.T, AHMEDNAGAR, CIRCLE-AHMEDNAGAR, AHMEDNAGAR

ITA 2510/PUN/2024Status: DisposedITAT Pune18 August 2025AY 2010-117 pages
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What did the Tribunal hold?

The Tribunal restored the issue of excess cane price paid to members to the file of the AO for fresh adjudication, considering the provisions of Section 155(19) of the Act and the pending application of the assessee. For the issue of sale of sugar at a concessional rate, the Tribunal also restored the matter to the AO with directions to consider the documents filed by the assessee, the State Government GR dated 01.03.2006, and the assessee's plea to calculate the difference between the levy price and concessional price instead of the market price and concessional price. The AO was directed to decide the issue afresh after providing an opportunity of being heard. The Tribunal also restored the issue of disallowance of agricultural income for AY 2012-13 to the AO for fresh adjudication after giving a reasonable opportunity of hearing. All grounds raised by the assessee were allowed for statistical purposes.

What were the facts?

The assessee, Shri Ganesh Sahakari Sakhar Karkhana Ltd., a cooperative society engaged in manufacturing sugar, filed appeals against orders of the CIT(A)/NFAC for Assessment Years (AYs) 2009-10, 2010-11, 2012-13, and 2013-14. For AY 2010-11, the Assessing Officer (AO) made additions on account of (i) sale of sugar at a concessional rate to members (Rs. 1,05,81,183/-) and (ii) excess sugarcane payment to farmers (Rs. 21,83,24,806/-). The CIT(A) restored the excess cane price issue to the AO for fresh adjudication, referencing a Pune Tribunal decision and CBDT circular. Regarding the sale of sugar at a concessional rate, the CIT(A) partly allowed the claim, directing the AO to quantify and disallow only the excess quantum of sugar sold at concessional rates by applying the prevalent market rate. For AY 2012-13, an additional ground concerning the disallowance of agricultural income (Rs. 1,22,324/-) was raised.

What were the issues?

1. Whether the disallowance and addition of Rs. 21,83,24,806/- on account of excess cane price paid to members is legally sustainable? 2. Whether the disallowance and addition of Rs. 1,05,81,183/- on account of sugar sold at a concessional rate is legally sustainable? 3. Whether the disallowance and addition of Rs. 1,22,324/- on account of agricultural income is legally sustainable? Assessee's Contentions: Regarding excess cane price (Issue 1), the assessee argued that the matter should be restored to the AO for fresh adjudication in light of Section 155(19) of the Act, as an application was pending before the AO. Regarding the sale of sugar at a concessional rate (Issue 2), the assessee contended that the issue should be set aside to the AO for re-examination in light of the Supreme Court's decision in CIT Vs. Krishna Sahkari Sakhar Karkhana Ltd. and the ITAT, Pune's order in ITA/2580/PUN/2024. The assessee also argued that the difference between the levy price and concessional price should be considered instead of the market price and concessional price. For agricultural income (Issue 3), the assessee submitted it could substantiate its claim with relevant documents if given an opportunity and requested the issue be set aside to the AO. Revenue's Contentions: The revenue had no objection to restoring the issue of excess cane price to the AO. Regarding the sale of sugar at a concessional rate, the revenue had no objection to restoring the matter to the AO to verify details and decide in light of the Supreme Court's decision in Krishna SSK Ltd.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 254,Section 144B,Section 40A(2),Section 155(19),Section 154

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Income Tax Appellate Tribunal, “A” BENCH, PUNE

Before: SHRI R.K. PANDA & MS. ASTHA CHANDRA

For Appellant: Shri Hanmant Dattatry Dhavale
For Respondent: Shri Amol Khairnar

PER ASTHA CHANDRA, JM : The above four appeals filed by the assessee are directed against the separate orders dated 20.12.2024 and 25.10.2024 of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi [“CIT(A)"] pertaining to Assessment Years ("AYs”) 2009-10 and

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