2010 (1) TMI 117

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.... 2. Leave granted in special leave petitions. 3. Having heard learned counsel at length on the applicability of Section 40A (2) of the Income Tax Act, 1961, as it stood at the relevant time, we are of the view that large number of questions have remained unanswered in these cases. 4.The applicability of Section 40A (2) of the Income Tax Act, 1961 ['Act', for short] is linked to computation u....

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....se only after the profits are determined and profits can be determined only after all the expenses incurred for the business are deducted from the gross income. 5. On the above contentions, two questions were required to be considered by the Department, which are as follows: "Whether the above-mentioned differential payment made by the assessee(s) to the cane growers after the close of the f....

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....ment is relatable to the cost of the sugarcane or whether it is relatable to the division of profits amongst the members of the Society? 7. One of the points which will also arise for determination by the Assessing Officer will be on the theory of over-riding title in the matter of accrual or application of income. Therefore, in each of these cases, the Assessing Officer will decide the questio....