https://www.taxtmi.com/caselaws?id=33165 A pre-year-end resolution fixing an additional milk price linked to the quantity and quality supplied was treated as a business expenditure, not an appropriation of profits. Because the rate difference was decided before profits could be ascertained under the co-operative law scheme, it reflected a commercial purchase price adjustment made to procure milk on competitive terms. The fact that payment was made after year-end did not convert it into bonus or dividend. The principle of real profits required only truly ascertained profits to be distributed, so the final rate difference was allowable in computing business income. en-us Sat, 04 Apr 2009 00:00:00 +0530 Tue, 27 Jun 2023 17:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=33165 A pre-year-end resolution fixing an additional milk price linked to the quantity and quality supplied was treated as a business expenditure, not an appropriation of profits. Because the rate difference was decided before profits could be ascertained under the co-operative law scheme, it reflected a commercial purchase price adjustment made to procure milk on competitive terms. The fact that payment was made after year-end did not convert it into bonus or dividend. The principle of real profits required only truly ascertained profits to be distributed, so the final rate difference was allowable in computing business income. Case-Laws Income Tax Sat, 04 Apr 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=33165