1 ITXA867.07.sxw IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION KJ INCOME TAX APPEAL NO.867 OF 2007 The Commissioner of Income Tax-I, Pune )..Appellant Vs. Bhima Sahakari Sakhar Karkhana Ltd., )..Respondents ---- Mr.Vimal Gupta for the appellant. Mr. S. N. Inamdar for the respondents. ---- CORAM : J. P .DEVADHAR & MRS.MRIDULA BHATKAR,JJ DATE : 10/1/2011. PC 1 Two questions of law raised by the Revenue in this Appeal reads thus :- a) Whether in view of the facts and in the circumstances of the case the ITAT was right in law in deleting the addition of Rs.1,20,42,453/- on account of excess cane price paid relying on the ITAT, Special Bench, Mumbai decision in the 2 ITXA867.07.sxw case of Manjra SSK Ltd, in ITA No.647/PN/1996 for A.Y. 1992-93, 91 ITD 361 (Mum) (S.B) even when the decision has not been accepted by the department and appeal has been filed before the Hon’ble High Court ? b) Whether in view of the facts and in the circumstances of the case the ITAT was right in law in deleting the addition of Rs.12,54,390/- on account of Bakshish paid to harvesting and transport contractors ignoring the fact that this was purely voluntary in nature and not incidental to the business of the assessee ? 2 As regards the 1st question is concerned, Counsel on both sides state that in the light of the Judgment of the Apex Court in the case of Dy. Commissioner of Income Tax Vs. Shri Satpuda Tapi Parisar SSK Ltd., reported in 326 ITR 42, the matter is required to be remanded back to the CIT (A) for deciding the issue afresh and in accordance with law. 3 As regards the 2nd question is concerned, the Counsel on both sides state that the said question is covered against the Revenue by the decision of this Court in the case of CIT Vs. Samarth Sahakari Sakhar Karkhana Ltd., reported in 294 ITR 540. 3 ITXA867.07.sxw 4 Accordingly, the Appeal is disposed off by remanding the 1st question to the file of CIT (A) and answering the 2nd question in favour of the Assessee and against the Revenue. Appeal disposed off accordingly. (MRS.MRIDULA BHATKAR,J) (J.P.DEVADHAR,J)