Assessee, a co-operative sugar factory, purchased sugarcane at a price higher than Statutory Minimum Price (SMP) set by Central Government, based on State Advised Price (SAP).\u00a0 Assessing Offficer disallowed excess amount and Khodki charges, citing profit diversion under section 40A(2)(a). Tribunal held that section 40A(2)(a) did not apply to co-operative societies, additional payments over SMP were allowable under section 37(1).\u00a0 High Court held that issue raised in this appeal was covered by Judgment of this Court in case of CIT v. Manjara Shetkari Sahakari Sakhar Karkhana Ltd.\u00a0[2008] 166\u00a0Taxman\u00a0287\/301 ITR 191.\u00a0 Against said order revenue filed instant appeal-Supreme Court in CIT v. Tasgaon Taluka S.S.K. Ltd.\u00a0[2019] 103 taxmann.com 57\/262\u00a0Taxman\u00a0176\u00a0held that entire\/whole amount of difference between Statutory Minimum Price (SMP) and Additional Price (SAP) fixed for sugarcane cannot be said to be an appropriation of profit and only component of profit worked out while determining final price can be said to be an appropriation of profit and rest of amount is to be considered as deductible expenditure.\u00a0 In view of decision of Supreme Court in case of Tasgaon Taluka S.S.K. Ltd. (supra), orders passed by High Court and lower authorities were\u00a0 set aside and quashed and matters were remitted to respective Assessing Officers to decide issue afresh.Matter remanded back.<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 40A(2) : Expenses or payments not deductible-Excessive or unreasonable-Matter remanded back to the Assessing Officer. [S. 37(1), 40A(2)(a), Art. 136] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-47104","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-cfK","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=47104"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47104\/revisions"}],"predecessor-version":[{"id":47105,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/47104\/revisions\/47105"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=47104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=47104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=47104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}