Ravalgaon Sugar Farm Ltd. Vs CIT (Bombay High Court)
For Deduction u/s 32AB, the profits will be taken as reflected in the Profit & Loss Account finalized under Part II and III of the VI Schedule of the Companies Act, 1956 (Companies Act)– Bombay High Court
It is held that while computing the benefit under Section 32AB of the Act, the profit of the eligible business computed as per the requirement of Parts-II and III of Schedule-VI to the Companies Act can alone be taken into consideration and that therefore the additional sugarcane price paid in the month of October, 1990 could not have been deducted as expenditure while considering the profits for the purpose of grant of benefit under Section 32AB of the Act.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
The Assessee has preferred this Appeal under Section 260A of the Income Tax Act, 1961 (the Act) assailing the order dated 24 January 2003 passed by Income Tax Appellate Tribunal, Mumbai Bench (ITAT) in I.T.A. No. 871/Bom/94, by which the Appeal preferred by the Assessee has been dismissed. The Assessee had challenged the order of Commissioner of Income Tax (Appeals) upholding the order of the Assessing Officer deducting the additional cane price of Rs.78,86,857/- from the profits of the Assessee for AY 1990-91 while allowing the benefit under Section 32AB of the Act.
