https://www.taxtmi.com/caselaws?id=7066 Cess computed on annual net mining profits is treated as a levy on profits or gains of business, even where profits are ascertained on an objective or averaged basis. The reasoning recognises that mining profit may arise in law even when ore is not sold as ore but is consumed in the assessee's own manufacturing process, and that such profit can be separated from final business profit. Once the cess is linked to those mining profits, it falls within the statutory bar and is not deductible in computing business income. A fallback claim for allowance as a general business deduction also failed because the payment did not arise from ordinary commercial practice or trading principles and was expressly prohibited by the Act. en-us Tue, 27 Jun 1967 00:00:00 +0530 Sun, 08 Feb 2009 11:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7066 Cess computed on annual net mining profits is treated as a levy on profits or gains of business, even where profits are ascertained on an objective or averaged basis. The reasoning recognises that mining profit may arise in law even when ore is not sold as ore but is consumed in the assessee's own manufacturing process, and that such profit can be separated from final business profit. Once the cess is linked to those mining profits, it falls within the statutory bar and is not deductible in computing business income. A fallback claim for allowance as a general business deduction also failed because the payment did not arise from ordinary commercial practice or trading principles and was expressly prohibited by the Act. Case-Laws Income Tax Tue, 27 Jun 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7066