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2023 (1) TMI 1196 - AT - Income TaxReopening of assessment u/s 147 - assessee has failed to submit truly and fully the entire process of fixing final sugarcane price during the original assessment proceedings - HELD THAT:- In case of sugarcane growers that the co-operative sugar factories of south Gujarat are following a practice of deciding the purchase price of sugarcane after finalisation of its accounts and its profits in the financial year subsequent to procurement of sugarcane. It was also recorded that till the time of finalization of the purchase price, ad hoc payments are distributed among the sugarcane farmers. The final price is declared after arriving at the profit earned by the cooperative sugar factories during the year of procurement of sugarcane. Thus, the ad hoc payments and final payments contain an element of profit of co-operative sugar factories, which are distributed amongst the sugar cane growers in the guise of ‘cane price’, without payment of income tax on the profit so earned. We find that exact reason of reopening was recorded for A.Y. 2007-08 - Copy of which is filed on record by Ld. CIT-DR for the revenue. Considering the fact that on similar set of fact, the re-assessment order has been quashed by Hon'ble High Court in [2015 (7) TMI 297 - GUJARAT HIGH COURT] therefore respectfully following the same, we affirm the order of Ld. CIT(A). Appeal of the Revenue is dismissed.
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