{"id":211510,"date":"2019-03-07T01:15:57","date_gmt":"2019-03-06T19:45:57","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=211510"},"modified":"2019-03-12T16:57:13","modified_gmt":"2019-03-12T11:27:13","slug":"211510","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/03\/07\/211510\/","title":{"rendered":"SC elaborates on the scheme of determining additional purchase price under Clause 5A under Sugarcane Control Order, 1966"},"content":{"rendered":"

Supreme Court<\/strong>: On the question relating to assessment of the taxable income of a Co-operative Society engaged in the business of production of sugarcane and sale thereof, the 3-judge bench Dr. AK Sikri, SA Nazeer and MR Shah<\/strong>, JJ said that the entire amount of difference between the Statutory Minimum Price (SMP) and State Advisory Price (SAP) per se cannot be said to be an appropriation of profit.<\/p>\n

The Court noticed that to the extent of the component of profit which will be a part of the final determination of the SAP and\/or the final price\/additional purchase price fixed under Clause 5A of the Sugarcane Control Order, 1966 would certainly be and\/or said to be an appropriation of profit.<\/p>\n

It further said:<\/p>\n

\n

\u201conly that part\/component of profit, while determining the final price worked out\/SAP\/additional purchase price would be and\/or can be said to be an appropriation of profit and for that an exercise is to be done by the assessing officer by calling upon the assessee to produce the statement of accounts, balance sheet and the material supplied to the State Government for the purpose of deciding\/fixing the final price\/additional purchase price\/SAP under Clause 5A of the Control Order, 1966.\u201d<\/p>\n<\/blockquote>\n

Mechanism of determining additional purchase price under Clause 5A <\/strong><\/p>\n