Capital or Revenue Receipts
Last updated: 19 February 2008
Court :
Supreme Court
Brief :
Whether compulsory deduction made by sugar cooperative societies on account of non-refundable and refundable deposits and other funds are revenue receipts liable to be taxed under the Income Tax Act.
Citation :
Siddheshwar Sahakari Sakhar Kaarkhana Ltd. Vs. C.I.T
The court held that the amount which the society deducts from the cane prices as per its bye laws towards refundable and non refundable deposits can not be treated as the income of the society.As the bye laws contains the provisions of transferability of deposit and refund of deposit to members at the time of cessation of membership or to legal heirs at the time of death.
Rahul Tibrewal
Published in Income Tax
Views : 53
Comments
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
