Clarification regarding Section 36(1)(xvii) of the Income-tax Act, 1961 inserted vide Finance Act, 2015

Last updated: 17 November 2021

Save Share

Quick Summary

This circular provides clarification on Section 36(1)(xvii) of the Income-tax Act, 1961, which was introduced by the Finance Act, 2015. It concerns deductions for expenditure incurred by co-operative societies manufacturing sugar, specifically for purchasing sugarcane at or below the government-fixed price. The clarification confirms that 'price fixed or approved by the Government' includes prices set by State Governments, such as State Advised Prices, even if they exceed the Central Government's minimum prices.

Circular No.18/2021-Income Tax F.N0.173/146/2021/ITA-I Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes New Delhi, Dated 25thOctober, 2021 Subject: Clarification regarding Section 36(1)(xvii) of the Income-tax Act, 1961 inserted vide Finance Ac

Daily Limit Reached

You have reached your daily limit of 2 Free Notice & Circular

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Broadcasts
Daily E-Newsletter
Unlimited Notice & Circular Access

BEST VALUE

2 YEAR PLAN

3,499

(Inclusive of GST)

1 YEAR PLAN

1,999

(Inclusive of GST)

View all CCI PRO benfits

Already a PRO member? Login here for an ad-free experience.

FAQ :

Section 36(1)(xvii) allows for a deduction of expenditure incurred by a co-operative society engaged in sugar manufacturing, specifically for the purchase of sugarcane at a price equal to or less than the government-fixed price. This section became effective from 1st April 2016.

This phrase includes prices fixed by State Governments through their own Acts or Orders, such as the State Advised Price, even if these prices are higher than the Statutory Minimum Price or Fair and Remunerative Price set by the Central Government.

This clarification is relevant for co-operative societies engaged in the business of manufacturing sugar and their tax liabilities related to sugarcane purchases.

Section 36(1)(xvii) took effect from 1st April 2016, applying to the assessment year 2016-17 and subsequent assessment years.

Guest

Notification No : Circular No. 18/2021-Income Tax
Published in Income Tax
Source : https://incometaxindia.gov.in/communications/circular/circular-no-18-2021.pdf

Share Report Abuse

Comments

Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!