https://www.taxtmi.com/caselaws?id=767214 Excess sugarcane price paid by a cooperative sugar manufacturer over the statutory minimum price was treated as allowable business expenditure under section 37(1) where the payment arose from an agreed price approved by the managing committee and was found to be genuine. The regulatory scheme fixed only the minimum price, did not prohibit a higher agreed price, and the deleted Clause 5A did not govern the relevant years. The Tribunal's factual finding that the payment was not a device to divert profits or distribute profits was accepted, and the later CBDT circular could not change that position. The Revenue's challenge failed. en-us Tue, 11 Feb 2025 00:00:00 +0530 Fri, 30 Jan 2026 18:04:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767214 Excess sugarcane price paid by a cooperative sugar manufacturer over the statutory minimum price was treated as allowable business expenditure under section 37(1) where the payment arose from an agreed price approved by the managing committee and was found to be genuine. The regulatory scheme fixed only the minimum price, did not prohibit a higher agreed price, and the deleted Clause 5A did not govern the relevant years. The Tribunal's factual finding that the payment was not a device to divert profits or distribute profits was accepted, and the later CBDT circular could not change that position. The Revenue's challenge failed. Case-Laws Income Tax Tue, 11 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767214