NIRABHIMA SAHAKARI SAKHAR KARKHANA LIMITED,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 14, PUNE

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ITA 1789/PUN/2018Status: DisposedITAT Pune29 July 2022AY 2015-164 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The tribunal set aside the disallowance on sale of sugar at concessional rates for fresh adjudication. The disallowance on VSI contribution was deleted, following a precedent.

What were the facts?

The assessee, a sugar mill, appealed against the disallowance of Rs. 37,52,572/- for sale of sugar at concessional rates and Rs. 11,02,658/- for VSI contribution. The lower authorities had disallowed these amounts.

What were the issues?

Whether sale of sugar at concessional rates to members is a valid disallowance and whether VSI contribution is an allowable expense.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 43B

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: Shri Hanmant Dhavle
For Respondent: Shri M.G. Jasnani

Assessee by Shri Hanmant Dhavle Revenue by Shri M.G. Jasnani Date of hearing 18-07-2022 Date of pronouncement 29-07-2022 आदेश / ORDER

PER S.S. GODARA, JM :

1. This assessee‟s appeal for AY 2015-16 arises against the CIT(A)-7, Pune‟s order dated 25-09-2018 passed in case No. PN/CIT(A)-7/Cir-14/10197/2017-18, 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.

On the fact and in the circumstances of the case and in law of the learned Commissioner of Income Tax (Appeals)-7, Pune has erred in disallowing and adding back an amount of Rs.37,52,572/- on account of Sale of sugar at concessional rate.

2.

On the fact and in the circumstances of the case and in law of the learned Commissioner of Income Tax (Appeals)-7, Pune has erred in disallowing and adding back an amount of Rs.11,02,658/- on account of VSI Contribution.

3.

Mr. Jasnani vehemently supported the learned lower authorities action on assessee‟s sale of sugar at concessional rate (both to members) disallowed in both the lower proceedings. He fails to dispute that the sugar at concessional rate is 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 ground back to the assessing authority for its afresh appropriate adjudication as per law. Ordered accordingly.

4.

Coming to the second issue of VSI “Vasant Sugar Institute” contribution disallowance u/s 43B since involving a provision only, learned co-ordinate bench‟s order in Bhima SSK Ltd. has already rejected this very departmental stand. We thus delete the impugned disallowance.

5.

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

Order pronounced in the Open Court on 29th July, 2022.

Sd/- Sd/- (DIPAK P. RIPOTE) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER पुणे Pune; ददिधांक Dated : 29th 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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