TMI Blog2022 (8) TMI 1273X X X X Extracts X X X X X X X X Extracts X X X X ..... tion on facts or law in all these cases. Assessee appeals are allowed for statistical purposes. - ITA Nos. 1884 & 1885/PUN/2018 - - - Dated:- 25-8-2022 - SHRI S. S. GODARA , JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI , ACCOUNTANT MEMBER Assessee by : Shri M.K. Kulkarni Revenue by : Shri Saradar Singh Meena ORDER PER S. S. GODARA , JM : These assessee s twin appeals for assessment years 2013-14 and 2015-16 arise against the CIT(A)-1, Kolhapur s separate orders dated 26-04-2017 and 17-07-2018 in case Nos. SLI/54/16-17 and SLI/10235/17-18, respectively, in proceedings under Section 143(3) of the Income Tax Act, 1961, in short the Act Heard both the parties. Case files perused. 2. We notice at the outset that b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a part of payment of reasonable margins to the canegrowers/Farmers in consonance with the policy of the Central Government to all out development of the farmers. The addition be deleted. 3) On the facts and in the circumstances of the case and in law the Ld. CIT (A) was not justified in passing the appeal order in the case of this appellant as the similar and identical substantial questions of law are sub-judice before the Larger Bench of the Supreme Court and are going to be heard in the immediate near future. The verdict of the Hon'ble Supreme Court would have put full stop to the ongoing litigation. 4) On the facts and in the circumstances of the case and in law and without prejudice to ground No 1 above and since the ve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recommendations of CASP that the cane growers were entitled to reasonable margins on account of risks and profits. That confirming the view of the A.O. the Ld. CIT(A) has resultantly denied the reasonable margins to the cane growers by denying the expenditure u/s 37(1) to the appellant sugar factory and increased the taxable income of the appellant. It is a discouragement for allowing the reasonable margins to the cane growers. 7) On the facts and in the circumstances of the case and in law the Ld. CIT(A) was not justified in upholding the approach of the A.O. that cane price paid over and above FRP was nothing but distribution of profits reducing the taxable income of the appellant but at the same time ignoring the fact of policy of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ingly. 10) On the facts and in the circumstances of the case and in law the Ld. CIT(A) was not justified in relying upon the judgment of the Hon'ble Karnataka High Court in Nagarbail Salt Owners Co. Op. Society Ltd. (2016) 68 Taxmann.com 149 (Karnataka) which are strikingly distinguishable on facts and law. In that case there was no element at fixing the price like FRP in order to pay the reasonable margins to members. The decision pronounced in that case led to the proposition that since society has transferred funds to Distribution Pool before offering to tax and assessee thereon was duty bound to offer its profits to tax before diverting any funds to the Distribution Pool Fund Account. That is not the case here. The verdict of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
