https://www.taxtmi.com/caselaws?id=4454 Binding material charges paid as part of the cane price were not liable to disallowance because clause 3A of the Sugarcane (Control) Order, 1966 permitted, but did not require, a rebate for such material. No direction mandated deduction of 0.01% from the cane price in every transaction. The payments formed part of the commercially fixed cane price rather than a separate diversion of profit. Section 40A(2) of the Income-tax Act did not apply to payments made by a co-operative society to its members, while payments to non-members complied with the State Advised Price and were not subject to mandatory binding-material deductions. en-us Mon, 22 Oct 2007 00:00:00 +0530 Sat, 26 Jul 2008 12:18:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=4454 Binding material charges paid as part of the cane price were not liable to disallowance because clause 3A of the Sugarcane (Control) Order, 1966 permitted, but did not require, a rebate for such material. No direction mandated deduction of 0.01% from the cane price in every transaction. The payments formed part of the commercially fixed cane price rather than a separate diversion of profit. Section 40A(2) of the Income-tax Act did not apply to payments made by a co-operative society to its members, while payments to non-members complied with the State Advised Price and were not subject to mandatory binding-material deductions. Case-Laws Income Tax Mon, 22 Oct 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=4454