Budget 2023-24: Finance Minister Announces Relief For Sugar Co-operatives From Past Demand
Live LawIn her Budget 2023-24 speech, Finance Minister Nirmala Sitharaman proposed that for sugar co-operatives, for years prior to A.Y. 2016-17, if any deduction claimed for expenditure made on purchase of sugar has been disallowed, an application may be made to the Assessing Officer, who shall recompute the income of the relevant previous year after allowing deduction up to the price fixed or approved by the Government for such previous year. In order to provide certainty in this matter and to encourage co-operative movement in sugar sector, a new clause was inserted to amend sub-section of section 36 to provide that the amount paid for purchase of sugarcane by the co-operative societies engaged in the manufacture of sugar at a price which is equal to or less than the price fixed by or fixed with the approval of the Government shall be allowed as deduction for computing business income of the sugar co-operative factories. Section 155 states that in the case of a sugar mill co-operative, where any deduction in respect of any expenditure incurred for the purchase of sugarcane has been claimed by an assessee and deduction has been disallowed wholly or partly the Assessing Officer shall, on the basis of an application made by assessee recompute the total income of such assessee for previous year. The Assessing Officer shall allow such deduction to the extent expenditure is incurred at a price which is equal to or less than the price fixed or approved by the Government for that previous year.