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[Cites 16, Cited by 52]

Income Tax Appellate Tribunal - Pune

Shree Someshwar Sk Ltd., Pune vs Dcit, Pune on 14 March, 2019

         IN THE INCOME TAX APPELLATE TRIBUNAL
                   PUNE BENCH "B", PUNE

             BEFORE SHRI R.S. SYAL, VICE PRESIDENT AND
        SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER


Sl.      ITA No./Co.No. Name of Appellant      Name of Respondent        Asst. Year
No.
                               Heard on 12-03-2019
1        308/PUN/2018    Majalgaon Sahakari     ACIT, Circle-3,          2013-14
                         Sakhar Karkhana Ltd. Aurangabad
                         A/P. Sundarnagar,
                         Tal. Majalgaon, Dist
                         Beed - 431 131
                         PAN :AAABM0171G
2-4      985/PUN/2013    ACIT, Circle-2,        Majalgaon Sahakari       2008-09
         951/PUN/2014    Aurangabad             Sakhar Karkhana Ltd.     2009-10
         1252/PUN/2014                          A/P. Sundarnagar, Tal.   2010-11
                                                Majalgaon, Dist Beed -
                                                431 131
                                                PAN :AAABM0171G
5-6      1114/PUN/2012   ACIT, Circle-1,        Shri Chhatrapati Shahu   2007-08
         1115/PUN/2012   Kolhapur               Sahakari Sakhar          2008-09
                                                Karkhana Ltd.
                                                Shrimant Jaysingrao
                                                Ghatage Bhavan, Mal
                                                Bunglow,
                                                Tal. Kagal, Dist.
                                                Kolhapur
                                                PAN : AAAAS1032M
7-10     1419/PUN/2011   Loknete Balasaheb      ACIT, Satara Circle,     1990-91
         1420/PUN/2011   Desai Sahakari         Satara                   1995-96
         1421/PUN/2011   Sakhar Karkhana                                 1998-99
         1422/PUN/2011   Ltd.,                                           2000-01
                         Daulatnagar, Marali,
                         Tal. Patan, Dist.
                         Satara
                         PAN :
                         AAAAB0362K
11-12    1682/PUN/2012   Loknete Balasaheb      DCIT, Satara Circle,     2008-09
         2607/PUN/2012   Desai Sahakari         Satara                   2009-10
                         Sakhar Karkhana
                         Ltd.,
                         Daulatnagar, Marali,
                         Tal. Patan, Dist.
                         Satara
                         PAN :
                         AAAAB0362K
                                      2

                                                             SSK Group cases



13      2601/PUN/2012 Loknete Baburao Patil    ITO, Ward-1(1),          2009-10
                      SSK Ltd.,                Solapur
                      P.O. Laxminagar,
                      Post. Angar, Dist.
                      Solapur
                      PAN : AAACL6834E
14      583/PUN/2011 PD. DR. Vithalrao         ACIT (OSD),              1999-00
                      Vikhe Patil Sahakari     Ahmednagar
                      Sakhar Karkhana
                      Ltd.,
                      At Post. Pravaranagar,
                      Tal. Rahata
                      Dist. Ahmednagar -
                      413712
                      PAN : AAAAP0848A
15      317/PUN/2016 ACIT, Latur               Dr. Babasaheb         2011-12
                                               Ambedkar Sahakari
                                               Sakhar Karkhana Ltd.,
                                               Arvindnagar,
                                               A/P. Keshegaon,
                                               Tal & Dist. Osmanabad
                                               PAN : AAAAD0955E
16      446/PUN/2012  Gadhinglaj Taluka        ITO, Ward-1(3),       2000-01
                      Sahakari Sakhar          Ichalkaranji
                      Karkhana Ltd.,
                      Harli, Tal.
                      Gadhinglaj,
                      Dist. Kolhapur
                      PAN :
                      AAAAG0574A
17      1702/PUN/2012 Makai Sahakari           ACIT, Circle-1,          2008-09
                      Sakhar Karkhana          Solapur
                      Ltd.,
                      Bilarwadi (Jinti),
                      Tal. Karmala, Dist.
                      Solapur
                      PAN : AAAAS6100N
18      2123/PUN/2012 ACIT, Circle-2,          Manganga Sah. Sakhar     2007-08
                      Sangli                   Karkhana Ltd.,
                                               A/P. Sonarsiddhnagar,
                                               Tal. Adpadi, Dist.
                                               Sangli
                                               PAN : AAAAM1794J
19-22   548/PUN/2011    Kadwa SSK Ltd.,        ACIT, Circle-1,          2002-03
        640/PUN/2015    Rajaramnagar,          Nashik                   2010-11
        641/PUN/2015    Materewadi, Dindori,   DCIT, Circle-1,          2011-12
        2556/PUN/2016   Nashik - 422 209       Nashik                   2012-13
                        PAN : AAAAK1052F
                                       3

                                                            SSK Group cases



23 -24   553/PUN/2011 JCIT (OSD), Circle-1,   Kadwa SSK Ltd.,          2002-03
         1631/PUN/2011 Nashik                 Rajaramnagar,            1998-99
                       DCIT, Circle-1,        Materewadi, Dindori,
                       Nashik                 Nashik - 422 209
                                              PAN : AAAAK1052F
25-26    846/PUN/2012    DCIT, Circle-2,      Rajarambapu Patil SSK    2007-08
         847/PUN/2012    Sangli               Ltd.,                    2008-09
                                              Post. Sakharale,
                                              Islampur, Tal. Walwa,
                                              Dist. Sangli
                                              PAN : AAAAR0790D
27       1837/PUN/2012 Rajarambapu Patil      DCIT, Circle-2,          2009-10
                       SSK Ltd.,              Sangli
                       Post. Sakharale,
                       Islampur, Tal. Walwa,
                       Dist. Sangli
                       PAN :
                       AAAAR0790D
28       2608/PUN/2012 Kisanveer Satara SSK ITO, Ward-4, Satara        2009-10
                       Ltd.
                       Kisanveernagar,
                       Tal. Wai, Dist. Satara
                       PAN :AAAAK
                       0947M
29       1506/PUN/2014 ACIT, Ahmednagar       Kopergaon Sahakari       2003-04
                       Circle, Ahmednagar     Sakhar Karkhana Ltd.
                                              Gautamnagar,
                                              PO. Kolpewadi,
                                              Tal. Kopergaon,
                                              Dist. Ahmednagar
                                              PAN : AAATT3070H
30-31    1645/PUN/2011 Kopergaon SSK Ltd. DCIT, Ahmednagar             1998-99
         686/PUN/2014 Now known as            Circle, Ahmednagar       2003-04
                       Karmaveer
                       Shankarrao Kale        ACIT, Ahmednagar
                       Sahakari Sakhar        Circle, Ahmednagar
                       Karkhana Ltd.,
                       PO. Kolpewadi,
                       Tal. Kopergaon,
                       Dist. Ahmednagar
                       PAN : AAATT3070H
32       1615/PUN/2012 Karmyogi               DCIT, Circle-1(2),       2008-09
                       Shankarraoji Patil     Pune
                       Sahakari Sakhar
                       Karkhana Ltd.,
                       A/P.Bhavaninagar,
                       Tal. Indapur,
                       Dist. Pune
                       PAN : AAAAI0225N
                                     4

                                                         SSK Group cases



33-34   2139/PUN/2012 DCIT, Circle-1,      Kumbhi Kasari            2006-07
        2372/PUN/2012 Kolhapur             Sahakari Sakhar          1989-90
                                           Karkhana Ltd.,
                                           Kuditre, Tal. Karveer,
                                           Dist. Kolhapur
                                           PAN : AAAAK0363M
35      1442/PUN/2012 ACIT, Circle-1,      Sadashivrao Mandlik      2007-08
                      Kolhapur             Kagal Taluka Sahakari
                                           Sakhar Karkhana Ltd.,
                                           A/P. Sadashiv Nagar,
                                           Tal. Kagal,
                                           Dist. Kolhapur
                                           PAN : AAAAK1300Q
36-37   558/PUN/2012   DCIT, Pune          Bhima Shankar            2007-08
        559/PUN/2012                       Sahakari Sakhar          2007-08
                                           Karkhana Ltd.,
                                           Dattatray Nagar,
                                           Pargaon Tarphe,
                                           Avasari Bk
                                           Tal. Ambegaon,Dist.
                                           Pune
                                           PAN : AAAAB0949G
38      2268/PUN/2014 ACIT, Circle-14,     Bhima Shankar            2008-09
                      Pune                 Sahakari Sakhar
                                           Karkhana Ltd.,
                                           A/P. Madhukarnagar
                                           (Patas)
                                           Tal. Daund, Dist. Pune
                                           PAN : AAATB1781B
39      283/PUN/2012  Bhima Shankar        ACIT, Circle-1(1),       2007-08
                      Sahakari Sakhar      Pune
                      Karkhana Ltd.,
                      A/P. Dattatraynagar,
                      Tal. Ambegaon,
                      Dist. Pune
                      PAN :
                      AAAAB0949G
40      2276/PUN/2014 Bhima Sahakari       DCIT-1(1),               2011-12
                      Sakhar Karkhana      Pune
                      Ltd.,
                      A/P. Madhukarnagar
                      (Patas)
                      Tal. Daund, Dist.
                      Pune
                      PAN : AAATB1781B
                                     5

                                                         SSK Group cases



41      1165/PUN/2016 Bhima Sahakari       ITO, Ward-14(4),          2012-13
                      Sakhar Karkhana      Pune
                      Ltd.,
                      A/P. Madhukarnagar
                      (Patas)
                      Tal. Daund,
                      Dist. Pune
                      PAN : AAATB1781B
42-44   1045/PUN/2013 Bhaurao Chavan       ACIT, Circle-3,           2006-07
        1046/PUN/2013 Sahakari Sakhar      Nanded                    2008-09
        1047/PUN/2013 Karkhana Ltd.,       DCIT, Circle-3,           2009-10
                      Laxminagar,          Nanded
                      Degaon-Yelegaon
                      Tal. Ardhpur,
                      Dist. Nanded
                      PAN :
                      AAAAB0959Q
45-47   1005/PUN/2013 DCIT, Circle-3,      Dr. Babasaheb             2007-08
        1006/PUN/2013 Nanded               Ambedkar Co-op.           2008-09
        1007/PUN/2013                      Sugar Factory,            2009-10
                                           Keshegaon, Dist.
                                           Osmanabad
                                           PAN : AAAAD0955E
48      1207/PUN/2011 ACIT, Circle-2,      Shri Gajanan Sahakari     1999-00
                      Aurangabad           Sakhar Karkhana Ltd.,
                                           Sonaji Nagar, Rajuri,
                                           Dist. Beed
                                           PAN : 4003AX1809
49-50   1020/PUN/2013 DCIT, Circle-3,      Jaishivshankar Sahakari   2007-08
        1021/PUN/2013 Nanded               Sakhar Karkhana Ltd.,     2009-10
                                           Shesh Nagar,
                                           Manjari, Tal. Mukhed
                                           Dist. Nanded
                                           PAN : AABCJ0834F
51-52   538/PUN/2009   DCIT, Circle-2,     Shri Chhatrapati          2006-07
        374/PUN/2013   Kolhapur            Rajaram Sahakari          2009-10
                                           Sakhar Karkhana Ltd.,
                                           S.No.69, E-Ward,
                                           Kasaba Bawada,
                                           Kolhapur
                                           PAN : AAAAS4219A
53-54   65/PUN/2014    ACIT, Circle-2,     Jai Bhavani Sahakari      2007-08
        174/PUN/2012   Aurangabad          Sakhar Karkhana Ltd.,     1999-00
                                           Shivaji nagar Gadhi,
                                           Tal. Georai, Beed
                                           PAN : AAAAJ0612L
                                    6

                                                             SSK Group cases



55-56   2182/PUN/2012 Jawahar Shetkari       DCIT, Ichalkaranji         2007-08
        2183/PUN/2012 Sahakari Sakhar        Circle, Ichalkaranji       2009-10
                      Karkhana Ltd.,
                      Hupari, Shri
                      Kallappanna
                      Awadenagar,Hupari-
                      Yalgud,
                      Tal. Hatkanangale,
                      Dist. Kolhapur -
                      416203
                      PAN : AAAAJ0571C
57-63   680/PUN/2011 Dr. Baburao Bapuji      ACIT(OSD),                 1999-00
        1268/PUN/2011 Tanpure Sahakari       Ahmednagar                 1993-94
        1269/PUN/2011 Sakhar Karkhana Ltd.   DCIT, Ahmednagar           1994-95
        850/PUN/2014 Shrishivajinagar,       Circle,                    2001-02
        851/PUN/2014 Post. Rahuri Factory,   Ahmednagar                 2005-06
        852/PUN/2014 Tal. Rahuri                                        2009-10
        853/PUN/2014 Dist. Ahmednagar                                   2010-11
                      PAN : AAAAD1287F
64-65   994/PUN/2014 ACIT, Ahmednagar        Dr. Baburao Bapuji         2001-02
        995/PUN/2014 Circle,                 Tanpure Sahakari           2005-06
                      Ahmednagar             Sakhar Karkhana Ltd.
                                             Shrishivajinagar,
                                             Post. Rahuri Factory,
                                             Tal. Rahuri
                                             Dist. Ahmednagar
                                             PAN : AAAAD1287F
66      1272/PUN/2015 ACIT, Ahmednagar       Shri Dnyaneshwar           2004-05
                      Circle,Ahmednagar      Sahkari Sakhar
                                             Karkhana Ltd.,
                                             At Dnyaneshwar Nagar
                                             Post Bhende,
                                             Tal. Newasa
                                             Dist. Ahmednagar -
                                             414 605
                                             PAN : AAAAS4092H
67-71   180/PUN/2011   Shri Dnyaneshwar      DCIT, Ahmednagar           2001-02
        181/PUN/2011   Sahkari Sakhar        Circle, Ahmednagar         2000-01
        182/PUN/2011   Karkhana Ltd.,                                   1999-00
        183/PUN/2011   At Dnyaneshwar        ACIT (OSD)                 1994-95
        263/PUN/2012   Nagar Post Bhende,    Ahmednagar Circle,         2007-08
                       Tal. Newasa           Ahmednagar
                       Dist. Ahmednagar -
                       414 605               DCIT, Spl Range-2,
                       PAN : AAAAS4092H      Aurangabad
                                      7

                                                                SSK Group cases



72      265/PUN/2011    Ghodganga Sahakari      ITO, Range-2,              1998-99
                        Sakhar Karkhana         Pune
                        Ltd.,
                        Raosahebnagar,
                        Nhavare, Tal. Shirur,
                        Dist. Pune - 412211
                        PAN : AAAAG03561
73      763/PUN/2013    DCIT, Circle-1(2),      Ghodganga Sahakari         1999-00
                        Pune                    Sakhar Karkhana Ltd.,
                                                Raosahebnagar,
                                                Nhavare, Tal. Shirur,
                                                Dist. Pune - 412211
                                                PAN : AAAAG03561
74      1168/PUN/2015 ACIT, Ahmednagar          Kukadi Sahkari Sakhar      2011-12
                      Circle, Ahmednagar        Karkhana Ltd.,
                                                A/P. Pimpalgaon Pisa,
                                                Tal. Shrigonda,
                                                Dist. Ahmednagar-
                                                413703
                                                PAN : AAATK3702B
75-76   829/PUN/2015 Kukadi Sahkari             ACIT, Ahmednagar           2011-12
        2547/PUN/2012 Sakhar Karkhana           Circle, Ahmednagar         2009-10
                      Ltd.,
                      A/P. Pimpalgaon Pisa,
                      Tal. Shrigonda,
                      Dist. Ahmednagar-
                      413703
                      PAN : AAATK3702B
77-79   262/PUN/2011 Purna SSK Ltd.,            ACIT, Special Range-       1998-99
        129/PUN/2012 Basmatnagar,               2,                         1999-00
        128/PUN/2012 Dist. Hongoli-431512       Aurangabad                 1994-95
                      PAN : AAAAP0899B          DCIT, Special Range-
                                                2,
                                                Aurangabad
80-86   483/PUN/2014    ACIT, Circle-1,         Purna Sahakari Sakhar      2006-07
        1229/PUN/2013   Aurangabad              Karkhana Ltd.,             2007-08
        1230/PUN/2013                           Tq. Basmathnagar,          2008-09
        1231/PUN/2013                           Dist. Hingoli              2009-10
        296/PUN/2012                            PAN : AAAAP0899B           1999-00
        297/PUN/2012                                                       1994-95
        573/PUN/2011                                                       1998-99
87-90   488/PUN/2014    DCIT, Circle-3,         Manjra Shetkari Sah.       2000-01
        489/PUN/2014    Nanded                  Karkhana Ltd.,             2002-03
        490/PUN/2014                            At Post. Vilas Nagar,      2006-07
        1015/PUN/2013                           Ta. Dist. Latur            2009-10
                                                PAN : AAAAM1527D
                                      8

                                                             SSK Group cases



91-92   1050/PUN/2013 Manjra Shetkari Sah.    DCIT, Circle-3,           2008-09
        1051/PUN/2013 Karkhana Ltd.,          Nanded                    2009-10
                      At Post. Vilas Nagar,
                      Ta. Dist. Latur         Jt. CIT, Spl. Range-3
                      PAN :                   Nanded
                      AAAAM1527D
93      1271/PUN/2012 The Malegaon            DCIT, Circle-7,           2008-09
                      Sahakari Sakhar         Pune
                      Karkhana Ltd.,
                      A/P. Shivanagar,
                      Tal. Baramati,
                      Dist. Pune
                      PAN : AAATT2982L

94      325/PUN/2016    ACIT, Circle-3,       NSL Sugar Ltd.            2009-10
                        Aurangabad            (Formerly Jay Mahesh
                                              Sugar Industries Ltd.),
                                              Pawarwadi,
                                              Tq. Majalgaon,
                                              Dist. Beed - 431 131
                                              PAN : AACFJ7975R
95-96   1584/PUN/2014 Agasti Sahakari         DCIT, Ahmednagar          2007-08
        1585/PUN/2014 Sakhar Karkhana         Circle, Ahmednagar        2008-09
                      Ltd.,
                      Post Akole,
                      Taluka Akole
                      Dist. Ahmednagar-
                      422601
                      PAN :AAAAA1262B

97-98   1666/PUN/2014 ACIT, Ahmednagar        Agasti Sahakari Sakhar    2007-08
        1667/PUN/2014 Circle, Ahmednagar      Karkhana Ltd.,            2008-09
                                              A/P. Agastinagar
                                              Taluka Akole
                                              Dist. Ahmednagar-
                                              422601
                                              PAN :AAAAA1262B

                           Heard on 13-03-2019
99      2083/PUN/2012 Shri Pandurang        ACIT, Circle-1,             2009-10
                      Sahakari Sakhar       Solapur
                      Karkhana Ltd.,
                      A/P. Shreepur,
                      Tal. Malshiras,
                      Dist. Solapur
                      PAN : AAATS5264J
                                        9

                                                               SSK Group cases



100       989/PUN/2013    DCIT, Circle-3,        Shri Vithal Sahkari      2009-10
                          Nanded                 Sakhar Karkhana
                                                 Limited,
                                                 Omerga,
                                                 Dist. Osmanabad
                                                 PAN : AAAAS4776Q
101       2599/PUN/2012 Shree Shankar SSK        ACIT, Circle-1,          2009-10
                        Ltd.,                    Solapur
                        Sadashivnagar,
                        Tal. Malshiras
                        Dist. Solapur -
                        413111
                        PAN :AAAAS3735M
102       349/PUN/2011 Shirpur Shetkari          JCIT, Spl. Range-1,      1997-98
                        Sahakari Sakhar          Nashik
                        Karkhana Limited,
                        A/P. Shivajinagar,
                        Dahiwad,
                        Tal. Shirpur,
                        Dist. Dhule
                        PAN : AAAAS1058H
103       2598/PUN/2012 Sahakar Maharshi         ACIT, Circle-1,          2009-10
                        Shankarrao Mohite        Solapur
                        Patil SSK Ltd.,
                        Akluj,
                        Dist. Solapur -413118
                        PAN : AAAAS3736J
104-105   988/PUN/2014 The Sanjivani (Takil)     DCIT, Ahmednagar         2007-08
          989/PUN/2014 Sahakari Sakhar Ltd.,     Circle, Ahmednagar       2010-11
                        Sahajanandnagar,
                        Shingnapur, Tal.
                        Kopargaon, Dist.
                        Ahmednagar
                        PAN : AAAAT3291R
106       2605/PUN/2012 Vithalrao Shinde Patil   ACIT, Circle-1,          2009-10
                        SSK. Ltd.,               Solapur
                        PO Gangamai Nagar,
                        Tal. Madha,
                        Dist. Solapur
                        PAN :AAAAM1644B
107       2457/PUN/2012 Shri Vithal Sahakari     ACIT, Circle-1,          2009-10
                        Sakhar Karkhana          Solapur
                        Ltd.,
                        A/P. Venunagar,
                        Gurusale,
                        Tal. Pandharpur,
                        Dist. Solapur
                        PAN : AAAAS3892H
                                       10

                                                           SSK Group cases



108-111   575/PUN/2011   ACIT, Circle-3,     Terna Shetkari           1999-00
          96/PUN/2012    Nanded              Sahakari Sakhar          2001-02
          97/PUN/2012                        Karkhana Ltd.,           1995-96
          98/PUN/2012                        Terna Nagar, Dhoki,      1992-93
                                             Dist. Osmanabad
112-113   2610/PUN/2016 Shri Vridheshwar     ITO, Ward-4,             2012-13
          2611/PUN/2016 Sahakari Sakhar      Ahmednagar               2013-14
                        Karkhana Ltd.,
                        A.P. Adinathnagar,
                        Tal. Pathardi,
                        Dist. Ahmednagar-
                        414102
                        PAN : AABCV0782E
114       1117/PUN/2012 ACIT, Circle-1,    Shri Dudhaganga            2008-09
                        Kolhapur           Vedganga Sahakari
                                           Sakhar Karkhana Ltd.,
                                           A/P.Bidri,
                                           Tal. Kagal,
                                           Dist. Kolhapur
                                           PAN : AAAAS3732N
115       90/PUN/2017   Dr. Babasaheb      ACIT, Latur Circle,        2012-13
                        Ambedkar SSK Ltd., Latur
                        Arvindnagar,
                        Keshegaon,
                        Tal. & Dist.
                        Osmanabad-413506
                        PAN : AAAAD0955E
116       980/PUN/2013 ACIT, Circle-1,     Vaidyanath Sant            2009-10
                        Aurangabad         Eknath Sakhar Udyog,
                                           At. Eknath Nagar,
                                           Paithan Road,
                                           Tq. Paithan,
                                           Dist. Aurangabad
                                           PAN : AAGFV6446H
117       735/PUN/2016 Vaidyanath Sant     DCIT, Circle-1,            2012-13
                        Eknath Sakhar      Aurangabad
                        Udyog,
                        C/o. Vaidyanath
                        Sahakari Sakhar
                        Karkhana
                        At Post. Pangri
                        Tal. Parli-431515
                        Dist. Beed
                        PAN : AAGFV6446H
                                       11

                                                             SSK Group cases



118-119   1464/PUN/2009 ACIT, Circle-2,        M/s. Vaidyanath          2006-07
          984/PUN/2013 Aurangabad              Sahakari Sakhar          2009-10
                                               Karkhana Limited
                                               At Pangri,
                                               Tq. Parli (V),
                                               Dist. Beed
                                               PAN : AAAAV0304P
120       1223/PUN/2016 DCIT, Latur Circle,    Vikas Sahakari Sakhar    2011-12
                        Latur                  Karkhana Limited
                                               Vaishali Nagar,
                                               Nivi, Tq. Latur,
                                               Dist. Latur- 413531
                                               PAN : AAAATV2893E
121       702/PUN/2012  Ajinkyatara Sahakari   DCIT, Satara Circle,     2008-09
                        Sakhar Karkhana        Satara
                        Limited
                        A/P. Shahunagar,
                        Shendra
                        Tal. & Dist. Satara
                        PAN : AAAAA0510E
122       1041/PUN/2015 Shri Sant Kurmadas     ACIT, Circle-1,          2011-12
                        Sahakari Sakhar        Solapur
                        Karkhana Limited,
                        Ganpatrao
                        Sathenagar, Padsali,
                        Tal. Madha,
                        Dist. Solapur-413208
                        PAN :AAAAS6020M
123       2145/PUN/2012 Shri Tatyasaheb Kore   ACIT, Circle-1,          2009-10
                        Warana Sahakari        Kolhapur
                        Sakhar Karkhana
                        Ltd.,
                        A/P. Warananagar,
                        Tal. Panhala,
                        Dist. Kolhapur-
                        416113
                        PAN :AAAAT3108M
124-126   2141/PUN/2012 DCIT, Circle-1,        Shri Tatyasaheb Kore     2009-10
          205/PUN/2012 Kolhapur                Warana Sahakari          2007-08
          599/PUN/2012                         Sakhar Karkhana Ltd.,    2008-09
                        ACIT, Circle-1,        A/P. Warananagar,
                        Kolhapur               Tal. Panhala,
                                               Dist. Kolhapur-416113
                                               PAN :AAAAT3108M
                                        12

                                                                SSK Group cases



127-128   244/PUN/2013    ACIT, Circle-2,         Vishwasrao Naik          2006-07
          245/PUN/2013    Sangli                  Sahakari Sakhar          2009-10
                                                  Karkhana Ltd.,
                                                  A/P. Yashwantnagar,
                                                  Tal. Shirala,
                                                  Dist. Sangli
                                                  PAN : AAAAV0215B
129-130   2526/PUN/2012 Vishwasrao Naik           DCIT, Circle-2,          2009-10
          2604/PUN/2012 Sahakari Sakhar           Sangli                   2006-07
                        Karkhana Ltd.,
                        Yashwantnagar,
                        Chikhali, Tal. Shirala,
                        Dist. Sangli
                        PAN :AAAAV0215B
131-134   831/PUN/2014 The Shrigonda              DCIT, Ahmednagar         2007-08
          2455/PUN/2012 Sahakari Sakhar           Circle, Ahmednagar       2009-10
          903/PUN/2012 Karkhana Ltd.,                                      2008-09
          1174/PUN/2016 A/P. Shrigonda            ACIT, Ahmednagar         2006-07
                        Factory,                  Circle, Ahmednagar
                        Tal. Shrigonda
                        Dist. Ahmednagar
                        PAN : AAAAS4091E
135-136   2595/PUN/2012 DCIT, Ahmednagar          The Shrigonda            2009-10
          1499/PUN/2016 Circle, Ahmednagar        Sahakari Sakhar          2006-07
                                                  Karkhana Ltd.,
                          ACIT, Ahmednagar        A/P. Shrigonda
                          Circle, Ahmednagar      Factory,
                                                  Tal. Shrigonda
                                                  Dist. Ahmednagar
                                                  PAN : AAAAS4091E
137       264/PUN/2013  Sahyadri Sahakari         ITO, Ward-1,             2009-10
                        Sakhar Karkhana           Satara
                        Ltd.,
                        A/P. Yashwantnagar,
                        Tal. Karad,
                        Dist. Satara
                        PAN : AAAAS4070K
138       2597/PUN/2012 Shree Adinath SSK         ACIT, Circle-1,          2009-10
                        Ltd.,                     Satara
                        Bhalwani, Jeur,
                        Tal. Karmala,
                        Dist. Solapur
                        PAN :AAAAS4167M
139-140   1009/PUN/2013 ACIT, Circle-1,           Samarth Sahakari         2008-09
          1010/PUN/2013 Aurangabad                Sakhar Karkhana Ltd.,    2009-10
                                                  At. PO. Ankushnagar,
                                                  Ambad, Dist. Jalna
                                                  PAN : AADAS8482L
                                      13

                                                             SSK Group cases



141-143   1024/PUN/2013 Samarth Sahakari       ACIT, Circle-1,          2007-08
          1025/PUN/2013 Sakhar Karkhana        Aurangabad               2008-09
          1026/PUN/2013 Ltd.,                                           2009-10
                        At. PO. Ankushnagar,
                        Ambad, Dist. Jalna
                        PAN : AADAS8482L
144-146   1290/PUN/2012 Shree Someshwar        DCIT, Circle-6, Pune     2007-08
          1291/PUN/2012 SSK Ltd.                                        2008-09
          CO 3/PUN/2016 Tal. Baramati,                                  2010-11
                        Dist. Pune -412306
                        PAN : AAAAS2034B
147       1171/PUN/2014 DCIT, Circle-6, Pune   Shree Someshwar SSK      2010-11
                                               Ltd. Someshwarnagar,
                                               Tal. Baramati,
                                               Dist. Pune -412306
                                               PAN : AAAAS2034B
148-149   1686/PUN/2012 ACIT, Circle-3,        Shetkari Sahakari        1992-93
          1688/PUN/2012 Nanded                 Sakhar Karkhana Ltd.,    1994-95
                                               Swami Ramanand
                                               Tirthnagar, Killari,
                                               TQ. Ausa,
                                               Dist. Latur
                                               PAN : 40003-AT-1797
150       2609/PUN/2012 Sonhira Sahakari       DCIT, Circle-1,          2009-10
                        Sakhar Karkhana        Sangli
                        Ltd., Wangi, Tal.
                        Kadegaon,
                        Dist. Sangli-415305
                        PAN : AAATS7796R
151       1976/PUN/2012 ACIT, Circle-3(1),     Shree Satpuda Tapi      1996-97
                        Dhule                  Parisar Sahakari Sakhar
                                               Karkhana Ltd.,
                                               P.O. Purushottam
                                               Nagar,
                                               Tal. Shahada,
                                               Dist. Nandurbar
                                               PAN : 40003-AV-1761
152       1694/PUN/2016 Shree Satpuda Tapi     DCIT, Dhule Circle,     2012-13
                        Parisar Sahakari       Dhule
                        Sakhar Karkhana
                        Ltd.,
                        P.O. Purushottam
                        Nagar,Tal. Shahada,
                        Dist. Nandurbar
                        PAN : 40003-AV-
                        1761
                                      14

                                                              SSK Group cases



153       1493/PUN/2011 Siddheshwar Sahakari   DCIT, Spl. Range-2,       1993-94
                        Sakhar Karkhana        Aurangabad
                        Ltd.,
                        Silod, Maniknagar,
                        Tal. Silod,
                        Dist. Aurangabad
154       514/PUN/2017 M/s. Ashok Sahakari     ITO, Ward-4,              2013-14
                        Sakhar Karkhana        Ahmednagar
                        Ltd.,
                        A/P. Ashoknagar,
                        Tal. Shrirampur,
                        Dist. Ahmednagar
                        PAN : AACAA2410P
155-156   1289/PUN/2011 DCIT, Circle-1,        Vasantrao Dada Patil      2007-08
          1290/PUN/2011 Nashik                 SSK Ltd.,                 2008-09
                                               At Post Vithewadi,
                                               Post Lohner,
                                               Tal. Deola,
                                               Nashik
                                               PAN : AAAAV0637K
157       1143/PUN/2015 ACIT, Ahmednagar       Shri Jagdamba             1992-93
                        Circle, Ahmednagar     Sahakari Sakhar
                                               Karkhana Ltd.,
                                               A/P. Rashin,
                                               Tal. Karjat,
                                               Dist. Ahmednagar
                                               PAN : AAAAS3208H
158-160   2495/PUN/2012 Sahakar Maharshi       ACIT, Circle-1,           2008-09
          2496/PUN/2012 Bhausaheb Thorat       Ahmednagar                2009-10
          868/PUN/2014 Sahakari Sakhar                                   2010-11
                        Karkhana Ltd.,         DCIT, Ahmednagar
                        At Post Amrutnagar,    Circle, Ahmednagar
                        Tal. Sangamner,
                        Dist. Ahmednagar
                        PAN : AAAAS3893G
161-162   2590/PUN/2012 DCIT, Ahmednagar       Sahakar Maharshi          2008-09
          2591/PUN/2012 Circle, Ahmednagar     Bhausaheb Thorat          2009-10
                                               Sahakari Sakhar
                                               Karkhana Ltd.,
                                               At Post Amrutnagar,
                                               Tal. Sangamner,
                                               Dist. Ahmednagar
                                               PAN : AAAAS3893G
                                     15

                                                               SSK Group cases




Assessee (s) Represented by    Shri Pramod Shingte
                               Shri Prasanna Joshi
                               Shri K. Srinivasan
                               Shri M.K. Kulkarni
                               Shri Prateek Sandbhor
                               Shri Laxman R. Nawale (Employer)
                               Ms. Deepa Khare

None Appeared                  Sl.Nos. 16, 18, 35, 36 to 41, 48, 49 to 50, 51
                               to 52, 93, 94, 99, 114, 148 to 149 and 150

Revenue by                     Ms. Nandita Kanchan

Date (s) of hearing            12-03-2019 & 13-03-2019
Date of pronouncement          14-03-2019



                              आदेश / ORDER

PER BENCH :

This batch comprising of certain appeals by the assessees and the others by the Revenue relate to different assessment years captioned above. Since most of the appeals have at least one common issue, we are, therefore, disposing them off by this consolidated order for the sake of convenience.

2. Some of the appeals are recalled matters. Some of the appeals are time barred. We have gone through the reasons given for delay in the presentation of the such appeals, with which we are satisfied. As such, the delay in all such cases is condoned and the appeals are admitted for disposal on merits.

16

SSK Group cases I. EXCESSIVE SUGARCANE PRICE PAID

3. A common issue involved in almost all the appeals is on account of the addition made by the Assessing Officer (AO) towards of excessive sugarcane price paid to members as well as non-members of the respective assessees. On a representative basis, we are espousing the facts in the case of Majalgaon Sahakari Sakhar Karkhana Limited Vs. ACIT, Circle-3, Aurangabad - ITA No.308/PUN/2018 for the assessment year 2013-14. The assessee is engaged in the business of manufacturing of white sugar. During the course of assessment proceedings, the AO observed that the assessee paid excessive cane price, over and above the Fair and remunerative price (FRP) fixed by the Government, to its members as well as non-members. On being called upon to justify such deduction, the assessee gave certain explanation by submitting that such payment was solely and exclusively in connection with the business and the entire amount was deductible u/s.37(1) of the Income-tax Act, 1961 (hereinafter also called `the Act'). Relying on the judgment of Hon'ble Supreme Court in the case of DCIT Vs. Shri Satpuda Tapi Parisar S.S.K. Ltd. and others (2010) 326 ITR 402, the AO opined that the excessive price paid was in the nature of `distribution of profits' and hence not deductible. This is how, he computed the excessive cane price 17 SSK Group cases paid both to the members and non-members at Rs.22,02,95,387/- and made addition for the said sum. The ld. CIT(A) echoed the assessment order on this point.

4. Facts in all other cases qua this issue, in so far as the assessment proceedings are concerned, are mutatis mutandis similar. It is seen that in some cases, the addition got deleted, fully or partly by the ld. CIT(A), whilst in others the addition got sustained. This led to filing of the cross appeals both by the assessee as well as the Revenue before the Tribunal.

5. We have heard both the sides and gone through the relevant material on record. There is consensus ad idem between the rival parties that the issue of payment of excessive price on purchase of sugarcane by the assesses is no more res integra in view of the recent judgment of Hon'ble Supreme Court in CIT Vs. Tasgaon Taluka S.S.K. Ltd. (2019) 103 taxmann.com 57 (SC). The Hon'ble Apex Court, vide its judgment dated 05-03-2019, has elaborately dealt with this issue. It recorded the factual matrix that the assessee in that case purchased and crushed sugarcane and paid price for the purchase during crushing seasons 1996-97 and 1997- 98, firstly, at the time of purchase of sugarcane and then, later, as per the Mantri Committee advice. It further noted that the 18 SSK Group cases production of sugar is covered by the Essential Commodities Act, 1955 and the Government issued Sugar Cane (Control) Order, 1966, which deals with all aspects of production of sugarcane and sales thereof including the price to be paid to the cane growers. Clause 3 of the Sugar Cane (Control) Order, 1966 authorizes the Government to fix minimum sugarcane price. In addition, the additional sugarcane price is also payable as per clause 5A of the Control Order, 1966. The AO in that case concluded that the difference between the price paid as per clause 3 of the Control Order, 1966 determined by the Central Government and the price determined by the State Government under clause 5A of the Control Order, 1966, was in the nature of `distribution of profits' and hence not deductible as expenditure. He, therefore, made an addition for such sum paid to members as well as non-members. When the matter finally came up before the Hon'ble Apex Court, it noted that clause 5A was inserted in the year 1974 on the basis of the recommendations made by the Bhargava Commission, which recommended payment of additional price at the end of the season on 50:50 profit sharing basis between the growers and factories, to be worked out in accordance with the Second Schedule to the Control Order, 1966. Their Lordships noted that at the time when additional purchase price is determined/fixed under clause 5A, the 19 SSK Group cases accounts are settled and the particulars are provided by the concerned Co-operative Society as to what will be the expenditure and what will be the profit etc. Considering the fact that Statutory Minimum Price (SMP), determined under clause 3 of the Control Order, 1966, which is paid at the beginning of the season, is deductible in the entirety and the difference between SMP determined under clause 3 and SAP/additional purchase price determined under clause 5A, has an element of distribution of profit which cannot be allowed as deduction, the Hon'ble Supreme Court remitted the matter to the file of the AO for considering the modalities and manner in which SAP/additional purchase price/final price is decided. He has been directed to carry out an exercise of considering accounts/balance sheet and the material supplied to the State Government for the purpose of deciding/fixing the final price/additional purchase price/SAP under clause 5A of the Control Order, 1966 and thereafter determine as to what amount would form part of the distribution of profit and the other as deductible expenditure. The relevant findings of the Hon'ble Apex Court are reproduced as under:-

"9.4. ..... Therefore, to the extent of the component of profit which will be a part of the final determination of SAP and/or the final price/additional purchase price fixed under Clause 5A would certainly be and/or said to be an appropriation of profit. However, at the same time, the entire/whole amount of difference between the 20 SSK Group cases SMP and the SAP per se cannot be said to be an appropriation of profit. As observed hereinabove, only that part/component of profit, while determining the final price worked out/SAP/additional purchase price would be and/or can be said to be an appropriation of profit and for that an exercise is to be done by the assessing officer by calling upon the assessee to produce the statement of accounts, balance sheet and the material supplied to the State Government for the purpose of deciding/fixing the final price/additional purchase price/SAP under Clause 5A of the Control Order, 1966. Merely because the higher price is paid to both, members and non- members, qua the members, still the question would remain with respect to the distribution of profit/sharing of the profit. So far as the non-members are concerned, the same can be dealt with and/or considered applying Section 40A (2) of the Act, i.e., the assessing officer on the material on record has to determine whether the amount paid is excessive or unreasonable or not........ 9.5 Therefore, the assessing officer will have to take into account the manner in which the business works, the modalities and manner in which SAP/additional purchase price/final price are decided and to determine what amount would form part of the profit and after undertaking such an exercise whatever is the profit component is to be considered as sharing of profit/distribution of profit and the rest of the amount is to be considered as deductible as expenditure."

6. Both the sides are unanimously agreeable that the extant issue of deduction for payment of excessive price for purchase of sugarcane, raised in most of the appeals under consideration, is squarely covered by the aforesaid judgment of the Hon'ble Supreme Court. Respectfully following the precedent, we set- aside the impugned orders on this score and remit the matter to the file of the respective A.Os. for deciding it afresh as per law in consonance with the articulation of law by the Hon'ble Supreme Court in the aforenoted judgment. The AO would allow deduction for the price paid under clause 3 of the Sugar Cane (Control) 21 SSK Group cases Order, 1966 and then determine the component of distribution of profit embedded in the price paid under clause 5A, by considering the statement of accounts, balance sheet and other relevant material supplied to the State Government for the purpose of deciding/fixing the final price/additional purchase price/SAP under this clause. The amount relatable to the profit component or sharing of profit/distribution of profit paid by the assessee, which would be appropriation of income, will not be allowed as deduction, while the remaining amount, being a charge against the income, will be considered as deductible expenditure. At this stage, it is made clear that the distribution of profits can only be qua the payments made to the members. In so far as the non- members are concerned, the case will be considered afresh by the AO by applying the provisions of section 40A(2) of the Act, as has been held by the Hon'ble Supreme Court supra. Needless to say, the assessee will be allowed a reasonable opportunity of hearing by the AO in such fresh determination of the issue.

7. It is noted that in some of the appeals, the assessees have raised an alternate ground for allowing deduction u/s.80P in respect of the addition.

22

SSK Group cases

8. The ld. ARs, in some of the cases, which were represented by them, were fair enough not to press such ground as it is only an alternate ground and having become infructuous in view of the restoration of the matter to the AO. No argument was advanced in support of such ground in other cases, even where the ld. ARs participated in proceedings before the Tribunal. Therefore, the said alternate ground in all such cases is dismissed.

9. Apart from the above issue, which is common in almost all the appeals in this batch, there are certain appeals having other issues also. We will take up such issues one by one. II. ADDITION FOR SUGAR GIVEN TO MEMBERS AT CONCESSIONAL RATES - [Appeals in which Krishna Sahakari Sakhar Karkhana Limited (SC) not considered by lower authorities ]

10. In some of the appeals, there is another issue of giving sugar to members at concessional rates. Such ground is against the disallowance on account of price difference on certain quantity of sugar given to the members at concessional rate.

11. Having heard both the sides and gone through the relevant material on record, it is observed that the AO made addition of the 23 SSK Group cases difference between the market price and the concessional price at which sugar (final product) was given to farmers and cane growers. In this regard, it is observed that this issue has been considered by the Hon'ble Supreme Court in the case of CIT Vs. Krishna Sahakari Sakhar Karkhana Limited (2012) 27 taxmann.com 162 (SC). Vide judgment dated 25-09-2012, the Hon'ble Supreme Court noticed that the difference between the average price of sugar sold in the market and the price of sugar sold by the assessee to its members at concessional rate was taxed by the Department under the head "Appropriation of profit". The Hon'ble Summit Court remitted the matter to the CIT(A) for considering, inter alia,:

"whether the abovementioned practice of selling sugar at concessional rate has become the practice or custom in the Co- operative sugar industry?; and whether any Resolution has been passed by the State Government supporting the practice?; The CIT(A) would also consider on what basis the quantity of the final product, i.e. sugar, is being fixed for sale to farmers/cane growers/Members each year on month-to-month basis, apart from others from Diwali?" The issue under consideration can be decided by an appropriate lower authority only on the touchstone of the relevant factors noted in the above judgment. In our considered opinion, it would be just and fair if the impugned orders 24 SSK Group cases on this score are set aside and the matter is restored to the file of AOs, instead of to the CITs(A), for fresh consideration as to whether the difference between the average price of sugar sold in the market and that sold to members at concessional rate is appropriation of profit or not, in the light of the directions given by the Hon'ble Supreme Court in the case of Krishna Sahakari Sakhar Karkhana Limited (supra). Restoration to the AO is necessitated because, following the judgment of the Hon'ble Apex Court in the case of Tasgaon Taluka S.S.K. Ltd. (supra), we have remitted the issue of payment of excessive price to the file of AO, and as such, the instant issue cannot be sent to ld. CIT(A) as it would amount to simultaneously sending one part of the same assessment order to the AO and other to the CIT(A), which is not appropriate. We order accordingly.
III. DISALLOWANCE            OF    CONTRIBUTION          TO AREA

DEVELOPMENT FUND

12. Another issue in some of the appeals is against the deletion/confirmation of disallowance made by the AO on account of Area Development Fund.
13. Having heard both the sides and gone through the relevant material on record, it is seen that similar issue came up for 25 SSK Group cases consideration before the Hon'ble Supreme Court in the case of Siddheshwar Sahakari Sakhar Karkhana Limited Vs. CIT and others (2004) 270 ITR 1 (SC). In that case, the Hon'ble Supreme Court observed in para 44 that the receipts in the form of Area Development Fund always remained with the assessee. It also noted the contention of the assessee in para 45 that the realisations made towards the Area Development Fund were impressed with the specific legal obligation to spend the money for specified purposes which were unrelated to the business of the sugar factory and hence, could not be treated as income of the assessee. Eventually, the Hon'ble Supreme Court remitted the matter back for fresh determination. It is noticed that in the appeals under consideration, the ld. CITs(A) have not considered the impact of the judgment of the Hon'ble Supreme Court in Siddheshwar Sahakari Sakhar Karkhana Limited (supra) and decided the issue without taking note of the factors directed to be considered in the aforenoted case. In view of the above decision of Hon'ble Supreme Court, we set-aside such impugned orders and remit the matter to the file of the respective AOs for deciding the issue afresh in conformity with the guidelines laid down by the Hon'ble Apex Court in the above judgment.
                                 26

                                                      SSK Group cases



IV.      DISALLOWANCE           FOR      LATE    DEPOSIT         OF

EMPLOYEES' SHARE IN EPF ETC.


14. Another issue in some of the appeals is against the confirmation of disallowance for delayed deposit of ESI / EPF employees' share. During the course of assessment proceedings, it was noticed that the assessee belatedly deposited the amount of employees' contribution towards EPF and ESI. The details of due dates and actual payments have been set out in the respective assessment orders. The AO, therefore, made such disallowance, which came to be affirmed in the first appeal.
15. We have heard the rival submissions and perused the relevant material on record. It is found that the issue raised herein is no more res integra. The Hon'ble Apex Court in the case of CIT v. Alom Extrusions Limited (2009) 319 ITR 306 (SC) has held that the amendment to first proviso and omission of the second proviso to section 43B by the Finance Act, 2003, is retrospective. The Hon'ble Delhi High Court in the case of CIT v. Aimil Limited (2010) 321 ITR 508 (Delhi) has allowed deduction in respect of employees' share when the amount was paid before the due date.

When we consider these two judgments, it is manifested that both the employer's and employees' contribution are allowable as 27 SSK Group cases deduction if these are deposited albeit belatedly under the respective Acts, but before the due date of filing of return u/s 139(1) of the Act.

16. It is seen as an admitted position that the assessees in such cases deposited the employees' contribution towards EPF and ESIC before the due date u/s 139(1) of the Act. Respectfully following the aforenoted judgment of the Hon'ble Delhi High Court, we order for the deletion of the addition sustained in the first appeals on account of late deposit of employees' contribution to the Provident fund.

V. PROVISION FOR VASANTDADA SUGAR INSTITUTE (VSI) CONTRIBUTION :

17. Another issue raised in some of the appeals is against the confirmation of disallowance of contribution to Vasantdada Sugar Institute (VSI). The AO observed that the assessee made provision for Vasantdada Sugar Institute (VSI) contribution and claimed weighted deduction at 125% u/s.35(1)(ii) of the Act. The said amount was not paid to the institute. The same being only in the nature of provision, the AO did not allow deduction u/s.35(1)(ii). The ld. CIT(A) decided this issue in favour of the assessee by following an order passed by the Pune Benches of the 28 SSK Group cases Tribunal in the case of Bhima S.S.K. Ltd. (ITA No.1414/PUN/2000).

18. We have heard both the sides and gone through the relevant material on record. It is found that the ld. CIT(A) has determined this issue in favour of the assessee by following the order passed by the Pune Benches of the Tribunal in the case of Bhima S.S.K. Ltd. (supra). No material has been placed on record to show that this order of the Tribunal has been reversed or modified in any manner by the Hon'ble High Court. Respectfully following the precedent, we decide this issue in favour of the assessee. VI. CONTRIBUTION TO CHIEF MINISTER RELIEF FUND :

19. Another issue raised in some of the appeals is against the confirmation of addition on account of contribution made to Chief Minister Relief Fund.

20. The assessee contributed certain amount in the Chief Minister Relief Fund and claimed deduction for the same in its Profit and loss account. The AO observed that this fund established by the State Government is covered u/s.80G(iiihf) of the Act and, as such, the contribution is deductible at 50% of the aggregate of the sums specified. He, therefore, disallowed the amount, which action came to be countenanced in the first appeal. 29

SSK Group cases

21. We have heard both the sides and gone through the relevant material on record. There is no dispute that the assessee did make contribution to the Chief Minister Relief Fund. As against the assessee claiming the entire amount as deduction in its Profit and loss account, the AO opined that the said contribution was eligible for deduction u/s. 80G(iiihf) of the Act at the rate of 50% along with other qualifying sums. The ld. CIT(A) sustained the entire addition overlooking the fact that deduction u/s.80G(iiihf) was not allowed by the AO on such contribution in the computation of total income. Under these circumstances, we cannot uphold the disallowance of the entire amount claimed as deduction by the assessee in its Profit and loss account. Approving the additions made, we remit the matter to the file of the AO for granting the deduction u/s.80G(iiihf) as per law after allowing a reasonable opportunity of hearing to the assessee.

VII. KHODKI CHARGES

22. Another issue raised in some of the appeals is against non- granting of deduction towards payment of Khodki charges. On being called upon to justify such deduction, the assessee submitted that this payment was made as per the order of the Director of Sugar. It was further explained that at the time of harvesting, the 30 SSK Group cases harvesting labour cut more part of the upper side of the crop and therefore, to compensate loss in weight to the grower, the said Khodki charges were paid to the farmers. The AO was not satisfied with the explanation tendered on behalf of the assessee. He noted that the Commissioner of Sugar, on behalf of Government of Maharashtra, was issuing directions for payment of Khodki charges only on the basis of proposal sent by the respective assessees. The ld. CIT(A) deleted the addition by relying on the judgment of Hon'ble Bombay High Court in CIT Vs. Manjara Shetkari SSK Ltd. and others (2008) 301 ITR 191 (Bom.), against which the Revenue has come up in appeal before the Tribunal.

23. We have heard both the sides and gone through the relevant material on record. It is seen that Khodki charges were incurred as per the directions of the Director of Sugar to compensate for the farmers' loss for unevenly cutting of cane sugar at the time of harvesting. This issue came up for consideration before the Special Bench of the Tribunal in DCIT Vs. Manjara Shetkari SSK Ltd. (2004) 85 TTJ (Mum.)(SB) 369, which granted deduction for said expenses. On further appeal by the Revenue to the Hon'ble Bombay High Court, their Lordships in the aforenoted case approved the view taken by the Tribunal allowing deduction for payment of such Khodki charges. The ld. CIT(A) has recorded 31 SSK Group cases that the SLP filed by the Department in the case of Jadamba SSK Ltd., on similar issue, has been dismissed by the Hon'ble Supreme Court on 23-03-2009. In view of the fact that Khodki charges have been held as deductible by the Hon'ble jurisdictional High Court and the recent judgment of Hon'ble Supreme Court in Tasgaon Taluka Sahakari Sakhar Karkhana Ltd. (supra) does not cover Khodki charges, we hold that this issue needs to be decided in favour of the assessee.

VIII. DEDUCTION u/s.80P ON INTEREST AND DIVIDEND

24. In some of the appeals the issue of deduction under section 80P of the Act on interest and dividend income is also involved. The assessee claimed deduction u/s.80P(2)(d) of the Act on interest and dividend received from Co-operative Society on Savings Bank accounts. The AO did not allow such deduction. The ld. CIT(A) overturned the assessment order on this point and granted deduction. The Revenue is aggrieved by such allowing of deduction.

25. We have heard both the sides and gone through the relevant material on record. Relevant part of section 80P reads as under : -

"80P. (1) Where, in the case of an assessee being a co-operative society, the gross total income includes any income referred to in sub- section (2), there shall be deducted, in accordance with and subject to 32 SSK Group cases the provisions of this section, the sums specified in sub-section (2), in computing the total income of the assessee.
(2) The sums referred to in sub-section (1) shall be the following, namely :--
(a) to (c)
(d) in respect of any income by way of interest or dividends derived by the cooperative society from its investments with any other co-

operative society, the whole of such income; ........"

26. A cursory look of the above provision deciphers that any amount of interest or dividend derived by a Co-operative Society from its investments with any other Co-operative Society, is deductible under clause (d) of section 80P(2) of the Act. The ld. CIT(A) has given a categorical finding that assessee is a Co- operative Society and the Co-operative Bank from which the above-mentioned income was earned, is also a Co-operative Society duly registered under Maharashtra Cooperative Societies Act. This contention has not been controverted by the ld. DR with any cogent material or evidence. Thus, it is seen that the case of the assessee is fully covered u/s.80P(2)(d) of the Act. Reliance of the AO on the provisions of sub-section (4) of section 80P is misplaced. Such provision states that : ` The provisions of this section shall not apply in relation to any co-operative bank other than a primary agricultural credit society or a primary co-operative agricultural and rural development bank.' As the assessee under 33 SSK Group cases consideration is not a Co-operative Bank, the mandate of sub- section (4) does not extend to it. We, therefore, approve the view taken by the ld. CIT(A) in granting deduction u/s.80P(2)(d) of the Act in respect of interest and dividend income earned by the assessee on such facts.

27. In the result, all the appeals are fully/partly allowed for statistical purposes.

Order pronounced in the Open Court on 14th March, 2019.

         Sd/-                                         Sd/-
(PARTHA SARATHI CHAUDHURY)                        (R.S.SYAL)
     JUDICIAL MEMBER                           VICE PRESIDENT

पुणे Pune;  दनांक Dated : 14th March, 2019
सतीश

आदेश क   ितिलिप अ िे षत/Copy
                     षत      of the Order is forwarded to:

1.    अपीलाथ  / The Appellant;
2.      यथ  / The Respondent;
3.    The CIT(A) concerned

4.    The CIT concerned

5. िवभागीय ितिनिध, आयकर अपीलीय अिधकरण, पुणे "बी" / DR 'B', ITAT, Pune;

6. गाड फाईल / Guard file.

आदेशानुसार/ ार BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune 34 SSK Group cases Date

1. Draft dictated on 12-03-2019 Sr.PS

2. Draft placed before author 14-03-2019 Sr.PS

3. Draft proposed & placed JM before the second member

4. Draft discussed/approved JM by Second Member.

5. Approved Draft comes to Sr.PS the Sr.PS/PS

6. Kept for pronouncement on Sr.PS

7. Date of uploading order Sr.PS

8. File sent to the Bench Clerk Sr.PS

9. Date on which file goes to the Head Clerk

10. Date on which file goes to the A.R.

11. Date of dispatch of Order.

*