Sugarcane purchase deduction for co-operative sugar societies is limited to the Government-approved price, with excess cost disallowed. Deduction is available to a co-operative society engaged in sugar manufacture for expenditure incurred on purchase of sugarcane, but only up to the Government-fixed or Government-approved price. The allowance applies to the purchase cost of sugarcane as raw material, and any excess over the approved price is not deductible. A recomputation mechanism also exists for earlier years in which such deduction was disallowed, enabling the total income to be revised on application in accordance with the prescribed procedure.