The Commissioner Of Income Tax-I,Pune v. Dr.baburao Bapuji Tanpure,Sahakari Sakhar Karkhana Ltd.,Shrishivajinagar Tq.rahuri

TA 50/10 - 1 - IN THE HIGH COURT OF JUDICATURE AT BOMBAY BENCH AT AURANGABAD TAX APPEAL NO.50/2010 The Commissioner of Income Tax-I,Pune....Appellant.. Versus Dr.Baburao Bapuji Tanpure,Sahakari Sakhar Karkhana Ltd.,Shrishivajinagar Tq.Rahuri. ...Respondent... ..... Shri Alok Sharma, Advocate for appellant. ..... CORAM: S.C. DHARMADHIKARI & RAVINDRA V. GHUGE, JJ. DATE: 17.02.2014 ORDER : 1]Perused the order passed by the Commissioner for Income Tax and the Income Tax Appellate Tribunal. 2]In the light of our orders in the case of several other sugar factories and the issue being common, this appeal is admitted on the following substantial questions of law:- TA 50/10 - 2 - A) Whether on the facts and in the circumstances of the case and in law, the Hon.Tribunal did not err in holding that the disallowance made by the Assessing Officer on account of excess cane price paid to the members and non-members was not justified and in holding that such payments could not be disallowed either u/s 37(1) or u/s 40A (2)(b) of the Income Tax Act, 1961 ? F) Whether on the facts and in the circumstances of the case and in law, the Hon.Tribunal did not err in deleting the addition made by the Assessing Officer on account of difference between the market price of sugar and the concessional price at which sugar was sold to the cane growers by holding that no income accrued to the assessee on concessional sales and, therefore, the assessee was not liable to be assessed on the difference ? 3]Similar substantial question of law was dealt with and considered by us in Tax Appeal No.56 of 2011 and we have, by relying upon the judgment of the Hon'ble Apex TA 50/10 - 3 - Court, dated 25th September, 2012, passed in Special Leave to Appeal (Civil) No.8590/2010 and connected matters, allowed the appeals and remanded the case to the Commissioner of Income Tax (Appeals) forde-novo consideration of the above substantial questions of law. Similar order can be passed in this appeal as well. 4]Hence, we pass the following order:- a]The appeal is allowed. b]The order passed by the Income Tax Appellate Tribunal so also by the Commissioner of Income Tax (Appeals) is set aside. c]The matter is remanded to the Commissioner of Income Tax (Appeals) for de-novo consideration. d]The Commissioner of Income Tax (Appeals) shall decide the same on merits and in accordance with law, uninfluenced by any prior findings and conclusions. e]In the circumstances, there shall be no order as to costs. (RAVINDRA V. GHUGE, J.) (S.C. DHARMADHIKARI, J.)