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

ORDER

PER DR. DIPAK P. RIPOTE, AM:

“1. On the fact and in the circumstances of the case and in law of the learned NFAC – Commissioner of Income Tax(Appeals) Delhi, has erred in disallowing and adding back an amount of Rs.45,76,534/- on account of Excess Cane price paid to members. 2. The appellant craves for the leave, add, alter, amend, modify and delete any or all the above grounds of appeal s before or at the time of the hearing.” Findings & Analysis :

2. We have heard both the parties and perused the records. The only issued involved before us is whether price paid for purchase of sugar cane to the members is allowable as deduction or not!

3.1 “In the Finance Act 2023, the Government has made statutory amendment by inserting sub-section (19) in section 155 of the Income Tax Act, 1961 granting relief to cooperative sugar factories, which is reproduced as follows:

155(19) - Where any deduction in respect of any expenditure incurred for the purchase of sugarcane has been claimed by an assessee, being a co-operative society engaged in the business of manufacture of sugar, and such deduction has been disallowed wholly or partly in any previous year commencing on or before the 1st day of April, 2014, the Assessing Officer shall, on the basis of an application made by such assessee in this regard, recompute the total income of the assessee for such previous year after allowing deduction to the extent such expenditure is incurred at a price which is equal to or less than the [A] price fixed or approved by the Government for that previous year, and the provisions of section 154 shall, so far as may be, apply thereto, and the period of four years specified in sub-section (7) of that section shall be reckoned from the end of previous year commencing on the 1st day of April, 2022.] 3.2 Further, the SOP for application for Re-computation of total income of co-operative society engaged in the business of manufacture of sugar as provided in the sub-section 19 of Sec. 155 of the LT. Act, 1961 was issued by CBDT on 27/07/2023 vide Circular No.14 Qf2023.”