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| The Tax Publishers2020 TaxPub(DT) 1660 (Pune-Trib) INCOME TAX ACT, 1961
Section 143(3)
Straightway difference between market/levy price and concessional price of sugar could not be construed as appropriation of profit leading to addition as has been extantly done. The impugned order to this extent was set aside and matter was restored to AO for first ascertaining cost price of sugar to each assessee and then make addition on this issue by treating it is as a case of appropriation of profit only to the extent of concessional sale price which was below the cost price.
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Assessment - Addition to income - Sale of sugar at concessional rate to the members/other farmers by assessee engaged in manufacture and sale of sugar -
Assessee was engaged in manufacture and sale of sugar and its by products. AO made addition on account of sale of sugar at concessional rate to the members/ other farmers by the assesse.Held: Straightway difference between market/levy price and concessional price of sugar could not be construed as appropriation of profit leading to addition as has been extantly done. The impugned order to this extent was set aside and matter was restored to AO for first ascertaining cost price of sugar to each assessee and then make addition on this issue by treating it is as a case of appropriation of profit only to the extent of concessional sale price which was below the cost price. However, in determining cost price of sugar to the factory, not only all the direct costs but all the indirect costs would also be taken into consideration.
REFERRED :
FAVOUR : Partly in assessee's favour.
A.Y. :
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