Section 36(1)(xvii) - Expenditure by Co-operative Society for purchase of sugarcane at a specified price

Deduction for sugarcane purchase: recomputation allowed for cooperative societies where purchases match government fixed price.

Section 36(1)(xvii) allows a deduction for expenditure by a co operative society manufacturing sugar where sugarcane is purchased at a price equal to or less than the government fixed price. Under the recomputation mechanism in section 155(19), an assessee may apply for recomputation of prior years (commencing on or before 1 April 2014) where such deductions were disallowed; the Assessing Officer must recompute income permitting the deduction to the extent purchases met the government price, with the correction procedure applying and the four year reckoning period measured from the end of the previous year commencing 1 April 2022, and an SOP sets out the application process.