DCIT, COIMBATORE vs. THE COIMBATORE DISTRICT CO-OPERATIVE MILK PRODUCERS UNION LTD., COIMBATORE

This appeal of the Revenue is directed against the order of the Commissioner of Income Tax (Appeals) -3, Coimbatore, dated 21.09.2016 and pertains to assessment year 2013-14.

The only issue arises for consideration is addition of `8,02,35,099/-.

Shri N. Madhavan, the Ld. Departmental Representative, submitted that the assessee has shown `8,02,35,099/- as sundry creditors as on 31.03.2013, which included the amount payable towards additional price to other societies. According to the Ld. D.R., the assessee explained before the Assessing Officer that the additional price payable to societies, who procured milk from farmers, was shown as sundry creditors. The additional price has to be paid to the societies after getting approval from Government.

No one appeared for the assessee inspite of issue of notice by RPAD.

We have considered the submissions made by the Ld. D.R. and proceeded to dispose the appeal on merit. From the material available on record, it appears that the amount of `8,02,35,099/- was claimed as additional price payable to societies for procuring milk. On identical circumstances, a similar addition made by the Assessing Officer in the assessee's own case, for assessment years 2010-11 and 2011-12 was deleted by this Tribunal. Now, the contention of the Revenue before this Tribunal is that an appeal has already been filed before the High Court. This Tribunal is of the considered opinion that merely because an appeal was filed before the High Court, that cannot be a reason to take a different view on the issue Therefore, for the reasons stated by the co-ordinate Bench of this Tribunal for assessment years 2010-11 and 2011-12, the order of the CIT(Appeals) is confirmed.

In the result, the appeal filed by the Revenue is dismissed.