https://www.taxtmi.com/caselaws?id=448197 Additional sugarcane price paid by a co-operative sugar factory to member growers over the Government-fixed price was treated as an allowable business expenditure, because the Sugarcane (Control) Order, 1966 fixed only the minimum fair and remunerative price and permitted higher agreed payment. Clause 5 specifically contemplated additional price to growers, and the payment was made to actual suppliers in the course of business under the managing committee's decision, not as dividend or profit distribution. Applying commercial expediency and real profit computation, the excess payment could not be regarded as appropriation of profits merely because it was quantified after the accounting year, so the disallowance was set aside. en-us Tue, 31 Oct 2023 00:00:00 +0530 Sat, 13 Jan 2024 08:36:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448197 Additional sugarcane price paid by a co-operative sugar factory to member growers over the Government-fixed price was treated as an allowable business expenditure, because the Sugarcane (Control) Order, 1966 fixed only the minimum fair and remunerative price and permitted higher agreed payment. Clause 5 specifically contemplated additional price to growers, and the payment was made to actual suppliers in the course of business under the managing committee's decision, not as dividend or profit distribution. Applying commercial expediency and real profit computation, the excess payment could not be regarded as appropriation of profits merely because it was quantified after the accounting year, so the disallowance was set aside. Case-Laws Income Tax Tue, 31 Oct 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448197