TaxTMI 
TaxTMI 
Representation of Cotton Mills Federation (ICMF).
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....he obligation to produce controlled cloth may be allowed as a deduction under section 37(1) of the Income-tax Act, 1961. 2. Various statutory and non-statutory schemes for the production of controlled cloth were in operation since May, 1968. In May, 1968, the Textile Commissioner fixed the quota of controlled cloth to be packed by the various textile under the Cotton Textile (Control) Order, 1948....
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....uced by either or both the mills, the transferor mill was required to contribute to the Consumer Subsidy Fund of the Federation an amount calculated with reference to the shortfall. Again in April, 74, a statutory scheme was introduced and the Textile Commissioner allocated the quota of controlled cloth to be manufactured to the various mills but mills were permitted to transfer their obligation t....
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....ransferor mills were required to register the transfer with the Federation and to pay registration fee to them. The transferor mills were also required to make certain payments to the transfer mills as per separate agreements in consideration of transfer of obligations. 6. After considering the representation of the Federation, it has been decided by the Board that the payments made by the transf....