SHREE KHEDUT SAHAKARI KHAND UDYOG MANDLI LTD.,BARDOLI vs. INCOME TAX OFFICER, WARD-1, BARDOLI

ITA 738/SRT/2023Status: DisposedITAT Surat25 November 2025AY 2012-1367 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the disallowances sustained by the CIT(A) in some cases, while dismissing the appeals filed by both the assessee and the Revenue. The decision considered the Supreme Court's clarification in the Tasgaon Taluka case and found the CIT(A)'s approach reasonable.

What were the facts?

The appeals involved sugar cooperative societies claiming additional sugarcane price paid over the statutory Fair and Remunerative Price (FRP) as a business expenditure. The Assessing Officer and CIT(A) disallowed portions of these payments, treating them as profit distribution.

What were the issues?

The primary issue was whether the additional sugarcane price paid by cooperative sugar mills over the statutory FRP constituted a deductible business expenditure or an appropriation of profit. The Tribunal also considered the principles of natural justice and procedural compliance in assessment proceedings.

Which sections of the Income-tax Act were involved?

Section 37(1),Section 143(3)

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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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