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

ITA 2511/PUN/2024Status: DisposedITAT Pune18 August 2025AY 2012-137 pages
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What did the Tribunal hold?

The Tribunal decided to restore both the issue of excess cane price paid to members and the issue of sale of sugar at concessional rate to the file of the Assessing Officer (AO) for fresh adjudication. For excess cane price, this was in light of the provisions of Section 155(19) of the Act and the pending application before the AO. For the concessional sale of sugar, the AO was directed to consider the documents filed by the assessee, the GR issued by the State Government dated 01.03.2006, and to consider the assessee's plea to calculate the difference between levy price and concessional price instead of market price and concessional price. The AO was to decide these issues afresh after providing an opportunity of being heard. The grounds relating to these issues were allowed for statistical purposes. Additionally, the ground concerning the disallowance of agricultural income for AY 2012-13 was also restored to the AO for fresh adjudication after giving a reasonable opportunity of hearing. The Tribunal held that the findings in the lead case (ITA No. 2510/PUN/2024) would apply mutatis mutandis to the other appeals.

What were the facts?

The assessee, Shri Ganesh Sahakari Sakhar Karkhana Ltd., is a cooperative society engaged in manufacturing and selling sugar. The appeals before the ITAT Pune Bench concern assessment years 2009-10, 2010-11, 2012-13, and 2013-14. The assessee's returns were selected for scrutiny. The Assessing Officer (AO) made additions on account of (i) sale of sugar at concessional rates to members and (ii) excess sugarcane payment to farmers. The Commissioner of Income Tax (Appeals)/NFAC partly allowed the claim regarding sugar sales and restored the excess cane payment issue to the AO. The assessee appealed to the Tribunal. For AY 2012-13, an additional ground regarding disallowance of agricultural income was raised.

What were the issues?

1. Whether the CIT(A)/NFAC erred in disallowing and adding back Rs.21,83,24,806/- on account of excess cane price paid to members (Section 155(19) of the Act)? 2. Whether the CIT(A)/NFAC erred in disallowing and adding back Rs.1,05,81,183/- on account of sugar sold at concessional rate (Section 40A(2) of the Act)? 3. Whether the CIT(A)/NFAC erred in disallowing and adding back Rs.1,22,324/- on account of agricultural income (for AY 2012-13)? Assessee's Contentions: - Regarding excess cane price, the assessee argued for re-examination in light of Section 155(19) of the Act, as an application is pending before the AO. - Regarding concessional sale of sugar, the assessee requested the issue be set aside to the AO to re-examine in light of the Supreme Court's decision in CIT Vs. Krishna Sahkari Sakhar Karkhana Ltd. and to calculate the difference between Levy Price and Concessional Price instead of Market Price and Concessional Price. - Regarding agricultural income, the assessee submitted it could substantiate its claim with relevant documents and requested the issue be set aside to the AO. Revenue's Contentions: - The revenue had no objection if the matter of concessional sale of sugar was restored to the AO to verify details and decide in light of the Supreme Court's decision in Krishna SSK Ltd. - The revenue did not object to restoring the agricultural income issue to the AO.

Which sections of the Income-tax Act were involved?

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

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Income Tax Appellate Tribunal, “A” BENCH, PUNE

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

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 (“A

The order continues below.

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