While determining sugarcane purchase price profit component to be considered as sharing of profit and rest was deductible expenditure

C.I.T. Bombay Vs Tasgaon Taluka S.S.K.Ltd. (Supreme Court of India) Conclusion: AO was directed while determining sugarcane purchase price paid to the cane growers by the assessee-society to take into account the manner in which the business works, the modalities and manner in which SAP/additional purchase price/final price were decided and to determine what amount would form part of the profit and after undertaking such an exercise whatever was the profit component was to be considered as sharing of profit/distribution of profit and the rest of the amount was to be considered as deductible as...