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TMI Blog2013 (9) TMI 900X X X X Extracts X X X X X X X X Extracts X X X X ..... and order passed by the High court of Judicature at Bombay in Income Tax Appeal (L)No. 884 of 2008, dated 18.6.2009. This Court while issuing notice to the respondent was pleased to state as under : "Issue notice as to why the matter should not be remitted to the concerned Commissioner of Income Tax (Appeals) in terms of the order of this Court in the case of Deputy Commissioner of Income Tax, Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... would constitute appropriation of profits and not expenditure/expense under Section 37 of the Act. On the other hand, it is the case of the assessee(s) that they are bound to pay to the cane growers the final cane price as per the S.A.P. fixed by the State Government and the mere fact that S.A.P. fixed by the State Government is based on the price recommended by the assessee(s) after finalisatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l take into account the manner in which the business works, resolutions of the State Government, the modalities and the manner in which S.A.P. and S.M.P. are decided, the timing difference which will arise on account of the difference in the accounting years, etc. In a given case, if the assessee has made a provision in its accounts, then the Assessing Officer shall enquire whether such provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er whether the said differential payment constitutes an expense or distribution of profits? Ordinarily, we would not have remitted these matters, particularly when they are for Assessment Year 1992-1993, but, for the fact that this issue is going to arise repeatedly in future. It will also help the assessee(s) in a way that they will have to re-write their accounts in future depending upon the ou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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