C.I.T,PUNE vs KRISHNA SAHAKARI SAKHAR KARKHANA LTD. — C.A. No. 6957/2012

Case Summary: C.I.T., Pune v. Krishna Sahakari Sakhar Karkhana Ltd. Outcome: The Supreme Court remitted the case back to the Commissioner of Income Tax (Appeals) for de novo reconsideration, disposing of all 44 consolidated civil appeals with no order as to costs. Key Issue: Whether the difference between fair market price and concessional price at which a cooperative sugar society sells sugar to its farmer-members should be taxable as "appropriation of profit." Direction: The CIT(A) was instructed to re-examine: (1) whether such concessional sales constitute established industry practice/custom; (2) if state government resolutions support the practice; (3) the basis for determining monthly sugar quantities for member sales; and (4) all questions of law and fact remain open for reconsideration, with liberty for both parties to produce relevant documents. This case analysis is maintained by casestatus.in based on publicly available court records.