Ganesh Sahakari Sakhar Karkhana Ltd Vs DCIT (ITAT Pune)
ITAT Pune held that excess sugarcane price paid to the members and sale of sugarcane at concessional rate needs fresh consideration and accordingly, the matter is restored back to the file of AO.
Facts- The assessee is a cooperative society engaged in the business of manufacturing and sale of white sugar, compost and its by-product. AO completed the assessment u/s 143(3) with section 254 and section 144B of the Act vide his order dated 30.09.2021 thereby making addition(s) on account of – (i) sale of sugar at concessional rate to its members at Rs.1,05,81,183/- and (ii) excess sugarcane payment to the farmers of Rs.21,83,24,806/-.
CIT(A) partly allowed the claim of the assessee. However, being aggrieved, assessee has preferred the present appeal.
Conclusion- Held that so far as the issue of sale of sugar at concessional rate is concerned, we deem it proper to restore the issue to the file of the Ld. AO with a direction to consider the various documents filed by the assessee and the GR issued by the State Government dated 01.03.2006. The Ld. AO shall consider the plea of the assessee to calculate the difference between levy price and concessional price instead of market price and concessional price and decide the issue afresh and in accordance with law after providing due opportunity of being heard to the assessee. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes. In the result, the appeal filed by the assessee is allowed for statistical purposes.
