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2020 (3) TMI 688 - ITAT PUNEAddition on account of sale of sugar at concessional rate to the members/ other farmers by the assessee - HELD THAT:- As MANGANGA SAHAKARI SAKHAR KARKHANA LTD., GANESH SAHAKARI SAKHAR KARKHANA LTD [2019 (11) TMI 346 - ITAT PUNE] held in this process, the assessees got taxed even for the potential profit to the extent of difference between the cost price and market/levy price, as the case may be. Ergo, we hold that such a straightway difference between the market/levy price and the concessional price of sugar cannot be construed as appropriation of profit leading to addition as has been extantly done. The impugned orders to this extent are set aside and the matters are restored to the file of the respective AOs for first ascertaining the cost price of sugar to each assessee and then make addition on this issue by treating it is as a case of appropriation of profit only to the extent of the concessional sale price which is below the cost price. However, it is clarified that in determining cost price of sugar to the factory, not only all the direct costs but all the indirect costs should also be taken into consideration. In other words, all items of debit to the Trading and Profit and loss account would constitute cost base. Needless to say, the assessee will be allowed reasonable opportunity of hearing in such fresh proceedings on this issue - Appeal of assessee are allowed for statistical purposes.
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