CBDT Issues SoP on Recomputation of Total Income of Co-operative Society engaged in Sugar Manufacturing Business [Read Circular]
CBDT Issues SoP on Recomputation of Total Income of Co-operative Society engaged – Sugar Manufacturing Business – TAXSCAN
CBDT Issues SoP on Recomputation of Total Income of Co-operative Society engaged – Sugar Manufacturing Business – TAXSCAN
The Central Board of Direct Taxes (CBDT) issued 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.
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 over and above the Statutory Minimum Price (SMP) fixed by the Central Government under the Sugarcane Control Order, 1996.
In order to standardize the manner of filing application to the Jurisdictional Assessing Officer under sub-section (19) of section 155 of the Act and its disposal by the Jurisdictional Assessing Officer under the said section, following SOP has been outlined.
- The applicant must be a "co-operative society", as defined in sub-section (19) of section 2 of the Income-tax Act, engaged in the business of manufacturing of sugar. The co-operative society (referred to as "such co-operative society" hereinafter) seeking relief under sub-section (19) of section 155 of the Act should file an application to the Jurisdictional Assessing Officer.
- The application by such a Co-operative society can be filed for A Y 2015-16 or any earlier assessment year (AY).
- The Jurisdictional Assessing Officer may seek the following documents for the purpose of recomputation under sub-section (19) of section 155 of the Income Tax Act:
- Computation of tax, audit report under Section 44AB of the Act, audited Profit & Loss Account and Balance Sheet.
- Assessment Order/Appellate Order(s) of various appellate fora, as applicable, with respect to the disallowance made on account of excess price paid for purchase of sugarcane above the Statutory Minimum Price (SMP).
- Notice of Demand issued under section 156 of the Act.
- Challan of taxes paid, if any.
- Copy of Order(s)/Other legal instrument(s) regarding price fixation by Government based on which excess price was paid for purchase of sugarcane over and above Statutory Minimum Price (SMP).
- Documentary evidence regarding registration of co-operative society under State/Central Act.
- Any other document as considered necessary by the Jurisdictional Assessing Officer for the purposes of recomputation of total income under sub-section (19) of section 155 of the Act.
The Jurisdictional Assessing Officer (JAO) shall recompute the total income of such co-operative society under the provisions of sub-section (19) of section 155 read with section 154 of the Act. Further, the rectification under sub-section (19) of section 155 r.w.s. 154 of the Act can only be made till 31.03.2027.
Further, the officer shall pass an order under Section 155(19) r.w.s. 154 of the Income Tax Act within a period of six months from the end of the month in which the application is received by him.
To Read the full text of the Order CLICK HERE
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