1978 (1) TMI 34 - HC - Income Tax

Summary

The High Court of Andhra Pradesh ruled in favor of the assessee, Nizam Sugar Factory, allowing them to claim transport charges of sugarcane grown in its own farm as part of its manufacturing expense. The court held that the transport charges are deductible as they relate to the business of the assessee and are in conformity with Rule 7 of the Income Tax Rules. The reference was answered in the negative and in favor of the assessee.