Circular on clarification regarding Section 36 (1)(xvii) of the Income-tax Act, 1961 (dated – 25.10.2021) – CBDT.
View PdfCircular on clarification regarding Section 36 (1)(xvii) of the Income-tax Act, 1961 (dated – 25.10.2021) – CBDT.
- The Finance Act, 2015 inserted the following clause (xvii) in sub-section (1) of section 36 of the Income-tax Act, 1961 (the Act) to provide for deduction on account of the amount of expenditure incurred by a co-operative society engaged in the business of manufacture of sugar – “(xvii) the amount of expenditure incurred by a co-operative society engaged in the business of manufacture of sugar for purchase of sugarcane at a price which is equal to or less than the price fixed or approved by the Government;”
- This clause took effect from 01 .04 .2016 and accordingly applied to assessment year 2016-17 and subsequent assessment years.
- The issue of treatment of additional payment for sugarcane price by Cooperative sugar mills as an income distribution to farmer members and the resultant tax liabilities has been brought to the notice of the Central Board of Direct Taxes (the Board). ETC.,
