SAHAKAR SHIROMANI VASANTRAO KALE SSK LTD,BHALAWANI vs. INCOME-TAX OFFICER, WARD - 2 (5), SOLAPUR

ITA 754/PUN/2019Status: DisposedITAT Pune28 July 2022AY 2011-124 pages

AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the issues of excess cane price and concessional sale of sugar were to be remanded for fresh adjudication based on a previous co-ordinate bench's order. The other expenses were rejected due to the assessee's failure to provide requisite details.

What were the facts?

The assessee, a sugar cooperative factory, appealed against the disallowance of expenses including excess cane price and sale of sugar at concessional rates. The appeal also challenged disallowances for meeting, printing, stationery, and motor expenses.

What were the issues?

Whether excess cane price paid and sugar sold at concessional rates to members are allowable business expenses. Whether other miscellaneous expenses were incurred wholly and exclusively for business purposes.

Which sections of the Income-tax Act were involved?

Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE

Before: SHRI S.S. GODARA & DR. DIPAK P. RIPOTE

For Appellant: Smt. Deepa Khare

For Respondent: Shri Saradar Singh Meena

Assessee by Smt. Deepa Khare (Through virtual) Revenue by Shri Saradar Singh Meena Date of hearing 18-07-2022 Date of pronouncement 28-07-2022 आदेश / ORDER

PER S.S. GODARA, JM :

This assessee‟s appeal for AY 2011-12 arises against the CIT(A)-7, Pune‟s order dated 09-11-2017 passed in case No. PN/CIT(A)-7/Wd-2(2)/10340/2014-15, in proceedings under Section 143(3) of the Income Tax Act, 1961, in short „the Act‟.

Heard both the parties. Case file perused. 2. The assessee pleads the following substantive grounds in its appeal:-

1. Hon’ble CIT(Appeals)-7, Solapur has erred in confirming the disallowance of : Rs.42,48,02,714/- a. Excess Cane Price Rs. 91,32,523/- b. Sale of Sugar at Concessional Rate Rs. 5,365/- c. Meeting Expenses Rs. 1,95,529/- d. Printing and Stationery Exp Rs. 4,59,201/- e. Motor Expenses Rs. 52,623/- f. Garden Expenses 2. The unabsorbed depreciation and carry forward business losses may be recomputed in light of Ground No.1

Mr. Meena vehemently supported the learned lower authorities action on both counts i.e. assessee‟s payment of excess cane price and sale of sugar at concessional rate (both to members) disallowed in the lower proceedings. He fails to dispute that these former twin issues of excess cane price payment as well as sugar at concessional rate are no more res integra as the tribunal‟s various co-ordinate benches, and more particularly in The Malegaon Sahakari Sakhar Karkhana Limited vs. ITO‟s order dated 21.40.2021 has set aside the concerned assessee‟s substantive grounds back to the assessing authority for its afresh appropriate adjudication as per law. Ordered accordingly.

Coming to the assessee‟s four substantive grounds “c” to “f”, learned counsel could hardly dispute the clinching fact that it could not file all the requisite details before the lower authorities that the same had been “wholly and exclusively” incurred for the purpose of the business. Rejected accordingly.

This assessee‟s appeal is partly allowed for statistical purposes in above terms.

Order pronounced in the Open Court on 28th July, 2022.

Sd/- Sd/- (DIPAK P. RIPOTE) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे Pune; ददिधांक Dated : 28th July, 2022 GCVSR आदेश की प्रतिलिपि अग्रेपिि/Copy of the Order is forwarded to: अपीऱधर्थी / The Appellant; 1. प्रत्यर्थी / The Respondent; 2. 3. The CIT(A)-7, Pune 4. The Pr.CIT-6, Pune विभागीय प्रविविवि, आयकर अपीलीय अविकरण, पुणे “B” / 5. DR „B‟, ITAT, Pune 6. गार्ड फाईल / Guard file आदेशानुसार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अविकरण ,पुणे / ITAT, Pune

Date 1. Draft dictated on 19-07-2022 Sr.PS 2. Draft placed before author 28-07-2022 Sr.PS 3. Draft proposed & placed before the JM second member 4. Draft discussed/approved by Second JM Member. 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.

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