Case Law Details
Padmashri Dr. D.Y. Patil Sahakari Sakhar Karkhana Ltd. Vs ACIT (ITAT Pune)
ITAT Pune held that excess sugar cane prices over and above the Fair and Remunerative Price (FRP) fixed by the Government is to be determined as per latest statutory amendment in Section 155(19) of the Income Tax Act.
Facts- Sole substantive grounds in the appeal is challenging correctness of both the learned lower authorities action disallowing its alleged sugar cane purchase price paid to the cane growers in excess of the fair and remunerative price, “FRP” involving Rs.2,75,00,238/- and Rs.16,63,46,871/- and sugar sold at concessional rates to them having the amount in question of Rs.21,04,240/- in former appeal for assessment year 2016-17 in assessment orders dated 29.11.2018 and 30.12.2019 for assessment years 2016-17 and 2017-18 respectively, as upheld in the NFAC’s lower appellate order.
Conclusion- Held that the latest statutory amendment inserting clause (19) in sec.155 of the Act granting relief as the very issue followed by the Explanatory Memorandum thereto issued in very terms. Therefore, now since there is much more clarity on the above twin issues, the Assessing Officer may also be directed to consider all these latest amendments and clarifications in his consequential proceedings.
We have given our thoughtful consideration to the above rival pleadings and find prima facie force in assessee’s stand that the learned Assessing Officer, at the time of finalising his consequential/remand proceedings, shall consider the foregoing intervening legislative developments as per law after verifying all the necessary facts in light thereof. We order accordingly.
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