https://www.taxtmi.com/caselaws?id=71395 Compulsory contribution by a co-operative society to an education fund under the Maharashtra Co-operative Societies Act was treated as an appropriation of profits under co-operative law, not expenditure incurred wholly and exclusively for business, so it was not deductible under section 37 of the Income-tax Act. The fact that the payment was mandatory and measured by sugarcane crushed did not change its character into a trading expense, because the measuring criterion only fixed the amount payable. The doctrine of diversion by overriding title was inapplicable, as it concerns receipts diverted before reaching the assessee, whereas this was an outgoing payment. The disallowance was upheld. en-us Fri, 29 Apr 1983 00:00:00 +0530 Sat, 23 Apr 2011 11:39:58 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71395 Compulsory contribution by a co-operative society to an education fund under the Maharashtra Co-operative Societies Act was treated as an appropriation of profits under co-operative law, not expenditure incurred wholly and exclusively for business, so it was not deductible under section 37 of the Income-tax Act. The fact that the payment was mandatory and measured by sugarcane crushed did not change its character into a trading expense, because the measuring criterion only fixed the amount payable. The doctrine of diversion by overriding title was inapplicable, as it concerns receipts diverted before reaching the assessee, whereas this was an outgoing payment. The disallowance was upheld. Case-Laws Income Tax Fri, 29 Apr 1983 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71395