https://www.taxtmi.com/caselaws?id=5611 SC upheld the HC's view that, under rule 7(1) and 7(2)(a) of the Income-tax Rules, 1962, the "market value" of sugarcane grown and consumed by the assessee-manufacturer in its own factory is the same price at which it purchases sugarcane from outside growers. The Court held that where the assessee regularly buys the same agricultural produce in the ordinary course of business, that purchase price constitutes market value, even if the assessee is effectively the sole buyer in the region. Where the Sugarcane Control Order fixes a controlled price, that controlled price is deemed the market price. The assessee's appeals were dismissed without costs. en-us Wed, 30 Jul 1997 00:00:00 +0530 Tue, 16 Dec 2025 15:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5611 SC upheld the HC's view that, under rule 7(1) and 7(2)(a) of the Income-tax Rules, 1962, the "market value" of sugarcane grown and consumed by the assessee-manufacturer in its own factory is the same price at which it purchases sugarcane from outside growers. The Court held that where the assessee regularly buys the same agricultural produce in the ordinary course of business, that purchase price constitutes market value, even if the assessee is effectively the sole buyer in the region. Where the Sugarcane Control Order fixes a controlled price, that controlled price is deemed the market price. The assessee's appeals were dismissed without costs. Case-Laws Income Tax Wed, 30 Jul 1997 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5611