TMI Blog2022 (5) TMI 1058X X X X Extracts X X X X X X X X Extracts X X X X ..... appropriation of income - amount has been rightly included by the AO in the income of the appellant. The order of the AO is accordingly found in order and the same is confirmed. However; it is observed that. the AO has omitted to add the amount in the computation of total income forming part of the assessment order, The AO is accordingly directed to rectify this mistake and add the same to the total income while giving effect to this order. Mr. Walimbe vehemently could hardly rebut the clinging fact that the CIT(A) s detailed discussion has failed to comply with their lordships directions in explicit terms. We thus restore the instant issue once again back to the CIT (A) for his afresh adjudication on merits as contemplated under Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om other sugar co-operatives as income in the course of assessment framed on 29,02.2000 as upheld in the CIT(A) order. It emerges with the able assistance coming from the Revenue side that this is second round of proceeding between the parties before the Tribunal. Learned coordinate bench s earlier order dated 31.03.2007 had upheld Revenue s stand that the assessee s impugned amount received from other sugar cooperatives represented its taxable income only. The assessee thereafter appears to have filed its Tax Appeal ITA No. 1399 of 2009 before the hon'ble jurisdictional high court. Their lordships judgement dated 22.10.2012 therein had restored the instant issue back to the file of the CIT(A) to be decided afresh in light of Siddheshwr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee had received a sum of Rs. 1,01,11,934/- being the cane price of the sugar sold to other sugar factories. This is undoubtedly a revenue receipt in the hands of the .assessee. The assessee has not been able to point out the nexus and link between the cane development und and expenses made therefrom as to the cane price received by the assessee for the cane' supplied by the assessee to other factories. The excess cane available with the assessee has been supplied by the assessee to other sugar factories and, therefore, the same should have been included in the sale receipts. Whatever expenditure has been incurred by the assessee for growing the cane which has been supplied by the assessee to other factories has been claimed in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in disallowing and adding back an amount of 1,01,11,934/- towards Cane Price Receipt Not Shown as Income. In this .reqard it is stated as under: In this season 1990-91 and 1991-92, The Society had suffered a loss of Rs. 2, 71,37,840i- in respect of Sugar Can diverted to other Sugar Factories (as per the specific' Direction from Commissioner of Sugar Pune M. S.) The society is always facing the problem of Surplus Sugar cane in the area of operation, and it is the responsibility of the society to crush all the sugar cane and therefore society enters into an Agreement with the other sugar factories to sale the sugarcane to those suqqr factories as per specific instructions and directions of the Commissioner of Sugar Pune (M.S.) the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actories, but at the same time the society enters into an agreement with those sugar factories for Harvesting and Transportation Expenses, but many times dispute takes place regarding payment osf H T therefore such payment is shown as Receivable under' head Differed Revenue Expenditure (Expenses) and the amount of Rs.l,51,91,083.53/- is carried forward since the Financial Year 1994-1995 and in the financial year 1995-96 Entry for Rectification of Mistake was passed for the amount of Rs.1,08, 72,627.32/- and the balance of Rs.43,18,457/- is carried forward since the financial year 1995-96. In the financial year 1996-97 the society has earned a Contingent Income and the above the amount of Rs. 43,18,457/- and Rs. 98,10,811/- appeari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,11,934/- has been rightly included by the AO in the income of the appellant. The order of the AO is accordingly found in order and the same is confirmed. However; it is observed that. the AO has omitted to add the amount of Rs. 1,01,11,934/- in the computation of total income forming part of the assessment order, The AO is accordingly directed to rectify this mistake and add the same to the total income while giving effect to this order. 4. Mr. Walimbe vehemently could hardly rebut the clinging fact that the CIT(A) s detailed discussion has failed to comply with their lordships directions in explicit terms. We thus restore the instant issue once again back to the CIT (A) for his afresh adjudication on merits as contemplated under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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