THE COMMISSIONER OF INCOME TAX AAYAKAR BHAVAN, NEAR HOLY CROSS SCHOOL, CANTONMENT, AURANGABAD Vs. SHETKARI SAHAKARI SAKHAR KARKHANA LIMITED, KILLARI, TQ. AUSA, DISTRICT LATUR

JUDGEMENT

(1.) HEARD learned ASG for the appellant. None present for the respondent, though served. Two issues, as under, are pressed before us :

(2.) SO far as first issue is concerned, by an order dated 7.2.2012 passed in Tax Appeal No. 17 of 2008 (CIT Vs. Jai Ambika Sahakari Sakhar Karkhana Ltd.), we have held in favour of an assessee and against the revenue. Hence, for the reasons recorded in the order passed therein, the issue, so far as this Court is concerned, is concluded.

(3.) SO far the second issue is concerned, the facts may be briefly stated. The respondent -assessee is a cooperative sugar factory manufacturing sugar from sugarcane. It purchases sugarcane from it's producer members as well as non -member farmers. Small quantity of the sugar produced is offered for sale at a concessional rate to the farmers (i.e. producer members as well as non -members) supplying sugar cane to the appellant perhaps as an incentive and ensuring adequate supply of raw material required for production of sugar. According to the appellant the difference between the market price and the sell price of sugar is required sought to be added as an income of the assessee under Section 40A (2) of the Income Tax Act, 1961 (for the sake of brevity, hereinafter referred to as "the IT Act" ). Sub -section (2)(a) of Section 40A of the IT Act reads thus: