ITAT Orders De Novo Adjudication on Taxability of Concessional Sugar Distributed by Co-operative Sugar Factory

ACIT Vs Shree Tatyasaheb Kore Warana Sahakari Sakhar Karkhana Ltd. (ITAT Pune) Conclusion: Tribunal held that the differential amount between the levy price of sugar and the concessional price at which it was sold by a co-operative factory to its members and non-members constitutes an unallowable appropriation of profit to be added to business income, or a valid business practice could not be decided without examining the factual parameters mandated by the Supreme Court in Krishna Sahakari Karkhana Ltd. regarding industry practice, Government directions, eligibility of members, and pricing mec...