https://www.taxtmi.com/caselaws?id=24186 The HC upheld the constitutional validity of sections 44AC and 206C of the Income-tax Act, holding that Parliament is competent to adopt "purchase price" as the measure for collection of tax at source on specified goods. Section 44AC was read down as merely ancillary to section 206C, not as a self-contained charging or assessment provision, and regular assessment under sections 28-43C remains mandatory. The court held that the rates in section 206C(1) relate to the purchase price, not to income. For arrack in Andhra Pradesh, pursuant to CBDT clarification and departmental concession, "purchase price" was directed to mean only the issue price, excluding privilege or licence fee. en-us Tue, 07 Mar 1989 00:00:00 +0530 Wed, 03 Dec 2025 16:50:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24186 The HC upheld the constitutional validity of sections 44AC and 206C of the Income-tax Act, holding that Parliament is competent to adopt "purchase price" as the measure for collection of tax at source on specified goods. Section 44AC was read down as merely ancillary to section 206C, not as a self-contained charging or assessment provision, and regular assessment under sections 28-43C remains mandatory. The court held that the rates in section 206C(1) relate to the purchase price, not to income. For arrack in Andhra Pradesh, pursuant to CBDT clarification and departmental concession, "purchase price" was directed to mean only the issue price, excluding privilege or licence fee. Case-Laws Income Tax Tue, 07 Mar 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24186