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2018 (5) TMI 156 - HC - Income TaxPayment to the cane growers in excess of the price fixed by the Government - payment for business expediency - Held that:- Mere use of the word advance in the letter of the Sugarcane Growers Association by itself would not change the character of the payment, especially when the amount paid was an ascertained liability and the assessee was following mercantile system of accounting and the payment was also done during the relevant accounting year. Furthermore, the Tribunal rightly observed that the assessee could not avoid this payment in view of the business expediency, as the entire business of the assessee was depending upon the supplies of sugarcane. For the above reasons, we find, there are no merits in the appeal. - Decided in favour of assessee
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