https://www.taxtmi.com/caselaws?id=11441 Purchase bonus paid by a co-operative society to members, when linked to purchases and operating in substance as a deferred discount, is treated as business expenditure wholly and exclusively incurred for the society's business, even though it is distributed after ascertainment of net profits under co-operative law. The statutory allocation of profits under the Tamil Nadu Co-operative Societies Act is relevant to distribution, but not conclusive for computing taxable income under the Income-tax Act. On the deduction issue, a society whose members used the supplied goods for brick and tile manufacture, rather than for their own consumption, was not a consumers' co-operative society and was confined to the lower deduction limit under section 80P(2)(c). en-us Tue, 31 Dec 2002 00:00:00 +0530 Mon, 10 Aug 2009 09:06:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11441 Purchase bonus paid by a co-operative society to members, when linked to purchases and operating in substance as a deferred discount, is treated as business expenditure wholly and exclusively incurred for the society's business, even though it is distributed after ascertainment of net profits under co-operative law. The statutory allocation of profits under the Tamil Nadu Co-operative Societies Act is relevant to distribution, but not conclusive for computing taxable income under the Income-tax Act. On the deduction issue, a society whose members used the supplied goods for brick and tile manufacture, rather than for their own consumption, was not a consumers' co-operative society and was confined to the lower deduction limit under section 80P(2)(c). Case-Laws Income Tax Tue, 31 Dec 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11441