SAHAKARI KHAND UDUOG MANDAL LTD.,NA vs. ARIVS.DCIT, NAVSARI CIRCLE, NAVSARI, NAVSARI

ITA 213/SRT/2020Status: DisposedITAT Surat25 November 2025AY 2013-1467 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the allowability of additional sugarcane price paid over and above FRP depends on whether it was approved by the State government or competent authority. The reliance on older legal frameworks or decisions not considering the FRP regime was deemed misplaced.

What were the facts?

The appeals involve sugar cooperative societies claiming deductibility of Final Cane Price (FCP) paid over and above the Fair and Remunerative Price (FRP). The Revenue contended that this excess payment was a distribution of profits rather than a legitimate business expenditure.

What were the issues?

The primary issue was whether the additional sugarcane price paid by sugar cooperatives over the statutory FRP constituted a deductible business expenditure or a distribution of profits. The Tribunal also considered the applicability of different legal regimes and prior judicial precedents.

Which sections of the Income-tax Act were involved?

Section 37(1)

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Cases cited in this judgment(5)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

IN THE INCOME-TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER AND SHRI BIJYANANDA PRUSETH, ACCOUNTANT MEMBER ITA Nos. 738/SRT/2023 and 209/SRT/2024 AYs: (2012-13 and 2016-17) (Physical Hearing)

Bardoli, Surat - 394601, Gujarat Ward 1, Bardoli स्थायीलेखासं./जी आइआरसं./PAN/GIR No: AAAAS4554N (Appellant) (Respondent) ITA Nos. 211 to 214/SRT/2020 (AYs: 2011-12 to 2014-15)

Sahakari Khand Udhyog Mandal Ltd.

Gandevi Sugar, Gandevi, Tal. Gandevi, Navsari - 396360, Gujarat. VS. ACIT, Navsari Circle, Navsari स्थायीलेखासं./जीआइआरसं./PAN/GIR No: AAAAS3791B (Appellant) (Respondent) ITA Nos. 218 to 221/SRT/2020 (AYs: 2011-12 to 2014-15)

Navsari - 396360, Gujarat स्थायी लेखासं./जीआइआरसं./PAN/GIR No: AAAAS3791B (Appellant) (Respondent) ITA Nos. 222 to 225/SRT/2020 (AYs: 2011-12 to 2014-15) ACIT, Navsari Circle, Navsari VS. M/s Maroli Vibhag Khand Udyog Sahakari Mandali Ltd.

Kalyan Nagar, PO- Maroli Bazar, Taluka- Jalalpore, Dist. Navsari – 396436, Gujarat स्थायीलेखासं./जीआइआरसं./PAN/GIR N

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