Quick Summary
CBDT videCircular No. 14 of 2023 dated July 27, 2023issued Standard Operating Procedure (SOP) for making application for recomputation of total income of a co-operative society engaged in the business of manufacture of sugar, as provided for in the sub-section (19) of section 155 of the Income-tax Act, 1961 (the IT Act). Sugar factories operating in the co-operative sectors in certain States of India pay to sugarcane growers a final amount, often referred to as Final Cane Price (FCP) which is
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FAQ :
The SOP provides a clear procedure for co-operative sugar manufacturers to apply for the recomputation of their total income under Section 155(19) of the Income-tax Act, specifically addressing past tax litigation regarding sugarcane payments.
Eligible applicants are co-operative societies engaged in the business of manufacturing sugar, as defined in the Income-tax Act. Applications can be made for assessment years 2015-16 or any earlier assessment year.
The SOP addresses disputes where co-operative sugar factories claimed excess payments to sugarcane growers (above the Statutory Minimum Price) as business expenditure, but this was disallowed by tax authorities.
Applicants may need to provide tax computations, audit reports, financial statements, assessment orders, demand notices, proof of tax payments, government orders on price fixation, and proof of co-operative society registration.
The Jurisdictional Assessing Officer must pass an order under Section 155(19) within six months from the end of the month in which the application is received.
Rectification under Section 155(19) read with Section 154 of the Act can only be made until March 31, 2027.
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