https://www.taxtmi.com/caselaws?id=71835 A cooperative society that sold members' yarn quota on their behalf, under its bye-laws and a member-approved revised arrangement, was treated as acting for the members rather than earning the rate difference for itself. The record showed the change was commercially justified to ensure the benefit reached members and not intermediaries, and the additional evidence supported the factual position that members owned the looms. On those facts, the amount representing the difference between market realisation and quota price was either received as agent for the members or diverted at source by overriding title, so it did not constitute the society's taxable income. The allegation of a colourable device was rejected. en-us Thu, 30 Mar 2006 00:00:00 +0530 Wed, 27 Apr 2011 13:18:20 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71835 A cooperative society that sold members' yarn quota on their behalf, under its bye-laws and a member-approved revised arrangement, was treated as acting for the members rather than earning the rate difference for itself. The record showed the change was commercially justified to ensure the benefit reached members and not intermediaries, and the additional evidence supported the factual position that members owned the looms. On those facts, the amount representing the difference between market realisation and quota price was either received as agent for the members or diverted at source by overriding title, so it did not constitute the society's taxable income. The allegation of a colourable device was rejected. Case-Laws Income Tax Thu, 30 Mar 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71835