Section 36(1)(xvii) of the Income Tax Act

Income-tax Act, 2025: ss.29, 30, 31, 32

Section 36(1)(xvii) falls under section 36 of the Income-tax Act, 1961, which corresponds to section 29 (Deductions related to employee welfare), section 30 (Deduction on certain premium), section 31 (Deduction for bad debt and provision for bad and doubtful debt) and section 32 (Other deductions) of the Income-tax Act, 2025.

Read section 29 of the 2025 ActRead section 30 of the 2025 ActRead section 31 of the 2025 ActRead section 32 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 36(1)(xvii) is CIT v. Tasgaon Taluka S.S.K. Ltd. (103 Taxmann.com 57), cited in 306 of the 30 judgments on BharatTax that turn on this section.

Leading authorities on Section 36(1)(xvii)

CIT v. Tasgaon Taluka S.S.K. Ltd.
103 Taxmann.com 57 · 2019 · Supreme Court
306
citing judgments

The Supreme Court holds that the issue of payment of excessive price on purchase of sugarcane by assesses is no longer res integra. The court elaborately dealt with this issue.

CIT v. Mehsana District Co-operative Milk Producers Union Ltd.
146 Taxmann 355 · 2006 · High Court
13
citing judgments

Payments made by a milk cooperative union to its member societies based on the quantity of milk supplied, representing a final rate difference, are not distributions of profit and are allowable as business expenditure. This is because the resolutions to pay were passed before the end of the financial year, even if disbursement occurred later.

Judgments on Section 36(1)(xvii)

Vasantrao Desai Ajara Shetkari Sahakari Sakhar Karkhana Limited, Ajara vs. DCIT, Circle-1, Kolhapur

The appeal of the assessee is allowed for statistical purpose

ITA 2288/PUN/2026[2016-17]Status: DisposedITAT Pune25 Sept 2026AY 2016-17

Bench: Ms. Astha Chandra & Shri Dr. Dipak P. Ripoteassessment Year : 2016-17 Dy. Cit, Circle-1, Vasantrao Desai Ajara Shetkari Kolhapur Vs. Sahakari Sakhar Karkhana Limited, Gat No. 25, 27, At Post Gavse, Tal.-Ajara, Kolhapur-416505 Pan : Aaaaa0496R (Appellant) (Respondent) Assessment Year : 2016-17 Vasantrao Desai Ajara Shetkari Dy. Cit, Circle-1, Sahakari Sakhar Karkhana Limited, Vs. Kolhapur Gat No. 25, 27, At Post Gavse, Tal.-Ajara, Kolhapur-416505 Pan : Aaaaa0496R (Appellant) (Respondent) Assessee By : Shri Pramod Shingte Revenue By : Ms. Bhavya. I.V., Jt. Cit Date Of Hearing : 03-09-2026 Date Of Pronouncement : 25-09-2026

For Appellant: Shri Pramod ShingteFor Respondent: Ms. Bhavya. I.V., Jt. CIT
Section 154Section 155(19)Section 250Section 36Section 36(1)(xvii)

Deputy Commissioner of Income Tax, Circle -1, Kolhapur vs. Vasantrao Desai Ajara Shetkari Sahakari Sakhar Karkhana Limited, Ajara

The appeal of the assessee is allowed for statistical purpose

ITA 2273/PUN/2025[2016-17]Status: DisposedITAT Pune25 Sept 2026AY 2016-17

Bench: Ms. Astha Chandra & Shri Dr. Dipak P. Ripoteassessment Year : 2016-17 Dy. Cit, Circle-1, Vasantrao Desai Ajara Shetkari Kolhapur Vs. Sahakari Sakhar Karkhana Limited, Gat No. 25, 27, At Post Gavse, Tal.-Ajara, Kolhapur-416505 Pan : Aaaaa0496R (Appellant) (Respondent) Assessment Year : 2016-17 Vasantrao Desai Ajara Shetkari Dy. Cit, Circle-1, Sahakari Sakhar Karkhana Limited, Vs. Kolhapur Gat No. 25, 27, At Post Gavse, Tal.-Ajara, Kolhapur-416505 Pan : Aaaaa0496R (Appellant) (Respondent) Assessee By : Shri Pramod Shingte Revenue By : Ms. Bhavya. I.V., Jt. Cit Date Of Hearing : 03-09-2026 Date Of Pronouncement : 25-09-2026

For Appellant: Shri Pramod ShingteFor Respondent: Ms. Bhavya. I.V., Jt. CIT
Section 154Section 155(19)Section 250Section 36Section 36(1)(xvii)

Shree Bhogawati Sahakari Sakhar Karkhana Ltd, Kolhapur vs. ACIT, Circle-1, Kolhapur

In the result, the appeal of the assessee in ITA

ITA 2198/PUN/2024[2014-15]Status: DisposedITAT Pune15 Dec 2025AY 2014-15

Bench: Shri Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.2194 To 2198/Pun/2024 िनधा"रण वष" / Assessment Years : 2010-11 To 2014-15 Shree Bhogawati Sahakari Vs. Acit, Circle-1, Sakhar Karkhana Ltd., Kolhapur. Shahunagar Parite, Sugar Factory, Shahunagar Parite, Tal- Karveer, Kolhapur- 416211. Pan : Aaaas3731R Appellant Respondent Assessee By : Shri Nikhil S. Pathak Revenue By : Shri Amit Bobde Date Of Hearing : 09.12.2025 Date Of Pronouncement : 15.12.2025 आदेश / Order Per Bench : These Appeals Filed By The Assessee Are Directed Against The Separate Orders Dated 26.06.2024 Passed By Ld. Cit(A)/Nfac For The Assessment Years 2010-11 To 2014-15 Respectively. 2. There Is Delay In Filing Of The Present Appeals. We Are Satisfied With The Reasons Mentioned In The Application For Condonation Of Delay Duly Supported By An Affidavit That The Appeals Within The Prescribed Time Limit. After Hearing Ld. Dr, We Condone The Delay & Proceed To Adjudicate The Appeals. 3. Since Identical Facts & Common Issues Are Involved In All The Above Captioned Five Appeals Of The Assessee, Therefore, We Proceed To Dispose Of The Same By This Common Order. 4. First, We Shall Take Up The Appeal Of The Assessee In Ita No.2194/Pun/2024 For A.Y. 2010-11 For Adjudication As The Lead Case.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Amit Bobde
Section 143(1)Section 143(3)Section 250Section 36Section 36(1)

Shree Bhogawati Sahakari Sakhar Karkhana Ltd, Kolhapur vs. ACIT, Circle-1, Kolhapur

In the result, the appeal of the assessee in ITA

ITA 2197/PUN/2024[2013-14]Status: DisposedITAT Pune15 Dec 2025AY 2013-14

Bench: Shri Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.2194 To 2198/Pun/2024 िनधा"रण वष" / Assessment Years : 2010-11 To 2014-15 Shree Bhogawati Sahakari Vs. Acit, Circle-1, Sakhar Karkhana Ltd., Kolhapur. Shahunagar Parite, Sugar Factory, Shahunagar Parite, Tal- Karveer, Kolhapur- 416211. Pan : Aaaas3731R Appellant Respondent Assessee By : Shri Nikhil S. Pathak Revenue By : Shri Amit Bobde Date Of Hearing : 09.12.2025 Date Of Pronouncement : 15.12.2025 आदेश / Order Per Bench : These Appeals Filed By The Assessee Are Directed Against The Separate Orders Dated 26.06.2024 Passed By Ld. Cit(A)/Nfac For The Assessment Years 2010-11 To 2014-15 Respectively. 2. There Is Delay In Filing Of The Present Appeals. We Are Satisfied With The Reasons Mentioned In The Application For Condonation Of Delay Duly Supported By An Affidavit That The Appeals Within The Prescribed Time Limit. After Hearing Ld. Dr, We Condone The Delay & Proceed To Adjudicate The Appeals. 3. Since Identical Facts & Common Issues Are Involved In All The Above Captioned Five Appeals Of The Assessee, Therefore, We Proceed To Dispose Of The Same By This Common Order. 4. First, We Shall Take Up The Appeal Of The Assessee In Ita No.2194/Pun/2024 For A.Y. 2010-11 For Adjudication As The Lead Case.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Amit Bobde
Section 143(1)Section 143(3)Section 250Section 36Section 36(1)

Shree Bhogawati Sahakari Sakhar Karkhana Ltd, Kolhapur vs. ACIT, Circle-1, Kolhapur

In the result, the appeal of the assessee in ITA

ITA 2196/PUN/2024[2012-13]Status: DisposedITAT Pune15 Dec 2025AY 2012-13

Bench: Shri Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.2194 To 2198/Pun/2024 िनधा"रण वष" / Assessment Years : 2010-11 To 2014-15 Shree Bhogawati Sahakari Vs. Acit, Circle-1, Sakhar Karkhana Ltd., Kolhapur. Shahunagar Parite, Sugar Factory, Shahunagar Parite, Tal- Karveer, Kolhapur- 416211. Pan : Aaaas3731R Appellant Respondent Assessee By : Shri Nikhil S. Pathak Revenue By : Shri Amit Bobde Date Of Hearing : 09.12.2025 Date Of Pronouncement : 15.12.2025 आदेश / Order Per Bench : These Appeals Filed By The Assessee Are Directed Against The Separate Orders Dated 26.06.2024 Passed By Ld. Cit(A)/Nfac For The Assessment Years 2010-11 To 2014-15 Respectively. 2. There Is Delay In Filing Of The Present Appeals. We Are Satisfied With The Reasons Mentioned In The Application For Condonation Of Delay Duly Supported By An Affidavit That The Appeals Within The Prescribed Time Limit. After Hearing Ld. Dr, We Condone The Delay & Proceed To Adjudicate The Appeals. 3. Since Identical Facts & Common Issues Are Involved In All The Above Captioned Five Appeals Of The Assessee, Therefore, We Proceed To Dispose Of The Same By This Common Order. 4. First, We Shall Take Up The Appeal Of The Assessee In Ita No.2194/Pun/2024 For A.Y. 2010-11 For Adjudication As The Lead Case.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Amit Bobde
Section 143(1)Section 143(3)Section 250Section 36Section 36(1)

Shree Bhogawati Sahakari Sakhar Karkhana Ltd, Kolhapur vs. ACIT, Circle-1, Kolhapur

In the result, the appeal of the assessee in ITA

ITA 2195/PUN/2024[2011-12]Status: DisposedITAT Pune15 Dec 2025AY 2011-12

Bench: Shri Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.2194 To 2198/Pun/2024 िनधा"रण वष" / Assessment Years : 2010-11 To 2014-15 Shree Bhogawati Sahakari Vs. Acit, Circle-1, Sakhar Karkhana Ltd., Kolhapur. Shahunagar Parite, Sugar Factory, Shahunagar Parite, Tal- Karveer, Kolhapur- 416211. Pan : Aaaas3731R Appellant Respondent Assessee By : Shri Nikhil S. Pathak Revenue By : Shri Amit Bobde Date Of Hearing : 09.12.2025 Date Of Pronouncement : 15.12.2025 आदेश / Order Per Bench : These Appeals Filed By The Assessee Are Directed Against The Separate Orders Dated 26.06.2024 Passed By Ld. Cit(A)/Nfac For The Assessment Years 2010-11 To 2014-15 Respectively. 2. There Is Delay In Filing Of The Present Appeals. We Are Satisfied With The Reasons Mentioned In The Application For Condonation Of Delay Duly Supported By An Affidavit That The Appeals Within The Prescribed Time Limit. After Hearing Ld. Dr, We Condone The Delay & Proceed To Adjudicate The Appeals. 3. Since Identical Facts & Common Issues Are Involved In All The Above Captioned Five Appeals Of The Assessee, Therefore, We Proceed To Dispose Of The Same By This Common Order. 4. First, We Shall Take Up The Appeal Of The Assessee In Ita No.2194/Pun/2024 For A.Y. 2010-11 For Adjudication As The Lead Case.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Amit Bobde
Section 143(1)Section 143(3)Section 250Section 36Section 36(1)

Shree Bhogawati Sahakari Sakhar Karkhana Ltd, Kolhapur vs. ACIT, Circle-1, Kolhapur

In the result, the appeal of the assessee in ITA

ITA 2194/PUN/2024[2010-11]Status: DisposedITAT Pune15 Dec 2025AY 2010-11

Bench: Shri Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita Nos.2194 To 2198/Pun/2024 िनधा"रण वष" / Assessment Years : 2010-11 To 2014-15 Shree Bhogawati Sahakari Vs. Acit, Circle-1, Sakhar Karkhana Ltd., Kolhapur. Shahunagar Parite, Sugar Factory, Shahunagar Parite, Tal- Karveer, Kolhapur- 416211. Pan : Aaaas3731R Appellant Respondent Assessee By : Shri Nikhil S. Pathak Revenue By : Shri Amit Bobde Date Of Hearing : 09.12.2025 Date Of Pronouncement : 15.12.2025 आदेश / Order Per Bench : These Appeals Filed By The Assessee Are Directed Against The Separate Orders Dated 26.06.2024 Passed By Ld. Cit(A)/Nfac For The Assessment Years 2010-11 To 2014-15 Respectively. 2. There Is Delay In Filing Of The Present Appeals. We Are Satisfied With The Reasons Mentioned In The Application For Condonation Of Delay Duly Supported By An Affidavit That The Appeals Within The Prescribed Time Limit. After Hearing Ld. Dr, We Condone The Delay & Proceed To Adjudicate The Appeals. 3. Since Identical Facts & Common Issues Are Involved In All The Above Captioned Five Appeals Of The Assessee, Therefore, We Proceed To Dispose Of The Same By This Common Order. 4. First, We Shall Take Up The Appeal Of The Assessee In Ita No.2194/Pun/2024 For A.Y. 2010-11 For Adjudication As The Lead Case.

For Appellant: Shri Nikhil S. PathakFor Respondent: Shri Amit Bobde
Section 143(1)Section 143(3)Section 250Section 36Section 36(1)

Shree Khedut Sahakari Khand Udyog Mandli Ltd., Surat, Bardoli vs. Income Tax Officer, Ward-1, Bardoli

ITA 209/SRT/2024[2016-17]Status: DisposedITAT Surat25 Nov 2025AY 2016-17

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

Maroli Vibhag Khand Udyog Sahakari Mandali Ltd, Na vs. Arivs.ACIT, Navsari Circle, Navsari

In the result, the four Revenue appeals in ITA Nos

ITA 17/SRT/2021[2012-13]Status: DisposedITAT Surat25 Nov 2025AY 2012-13

Bench: Shri Dinesh Mohan

Section 143(3)

Maroli Vibhag Khand Udyog Sahakari Mandali Ltd., Na vs. Arivs.ACIT, Navsari Circle, Navsari

ITA 16/SRT/2021[2011-12]Status: DisposedITAT Surat25 Nov 2025AY 2011-12

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

ACIT, Na vs. Ari Circle, Navsarivs.M/S. Maroli Vibhag Khand Udyog Sahakari Mandali Ltd, Navsari

ITA 223/SRT/2020[2012-13]Status: DisposedITAT Surat25 Nov 2025AY 2012-13

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

ACIT, Na vs. Ari Circle, Navsarivs.Sahakari Khand Udyog Mandal Ltd, Navsari

ITA 221/SRT/2020[2014-15]Status: DisposedITAT Surat25 Nov 2025AY 2014-15

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

ACIT, Na vs. Ari Circle, Navsarivs.M/S. Sahkari Khand Udyog Mandal Ltd, Navsari

ITA 220/SRT/2020[2013-14]Status: DisposedITAT Surat25 Nov 2025AY 2013-14

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

ACIT, Na vs. Ari Circle, Navsarivs.Sahkari Khand Udyog Mandal Ltd, Navsari

ITA 219/SRT/2020[2012-13]Status: DisposedITAT Surat25 Nov 2025AY 2012-13

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

ACIT, Na vs. Ari Circle, Navsarivs.Sahkari Khand Udyog Mandal Ltd, Navsari

ITA 218/SRT/2020[2011-12]Status: DisposedITAT Surat25 Nov 2025AY 2011-12

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

Sahakari Khand Udyog Mandal Ltd, Navasari vs. ACIT, Navasari Circle, Navasari

ITA 214/SRT/2020[2014-15]Status: DisposedITAT Surat25 Nov 2025AY 2014-15

Bench: Shri Dinesh Mohan Sinha & Shri Bijyananda Pruseth

Section 143(3)Section 37(1)

Vishwasrao Naik Sahakari Kharkhana Ltd, Chikhali vs. DCIT Circle, Sangli

In the result, the appeal of the assessee is allowed for statistical purposes

ITA 2724/PUN/2024[2014-15]Status: DisposedITAT Pune21 May 2025AY 2014-15

Bench: Shri R. K. Panda & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.2724/Pun/2024 िनधा"रण वष" / Assessment Year : 2014-15 Vishwasrao Naik Sahakari Vs. Dcit, Circle, Sangli. Kharkhana Ltd., Gat. No.182/1, Yashwantnagar, Chikhali- 415408. Pan : Aaaav0215B Appellant Respondent Assessee By : Shri Pramod S. Shingte Revenue By Shri Arvind Desai : Date Of Hearing : 25.03.2025 Date Of Pronouncement : 21.05.2025 आदेश / Order Per Vinay Bhamore, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Dated 25.09.2024 Passed By Ld. Cit(A)/Nfac For The Assessment Year 2014-15. 2. The Assessee Has Raised The Following Grounds Of Appeal :- “1. On The Facts & The Circumstances Of The Case & In Law, Lower Authorities Erred In Passing Ex-Parte Order & Erred In Deciding The Issue Only On The Basis Of Material Available With Them, This Action Is Being Violative Of Principal Of Natural Justice. Your Appellant Prays For Granting Opportunity Of Hearing Before Lower Authorities.

For Appellant: Shri Pramod S. Shingte
Section 143(3)Section 36(1)(xvii)Section 37(1)

Sahakarmaharshi Bhausaheb Thorat Sahakari Sakhar Karkhana Limited, Ahmednagar vs. Deputy Commissioner of Income Tax, Circle, Ahmednagar

In the result, appeal of the assessee is allowed

ITA 1653/PUN/2024[2017-18]Status: DisposedITAT Pune10 Mar 2025AY 2017-18

Bench: Dr.Manish Borad & Shri Vinay Bhamoreआयकर अपील सं. / Ita No.1653/Pun/2024 िनधा"रण वष" / Assessment Year: 2017-18 Sahakarmaharshi Bhausaheb V The Deputy Thorat Ssk Ltd., S Commissioner Of At Amrutnagar, P.O.Sangamner, Income Tax, Circle, Tal.Sangamner, Ahmednagar. Dist.Ahmednagar, Maharashtra – 422608. Pan: Aaaas3893G Appellant / Assessee Respondent / Revenue Assessee By Shri Mihir M. Bapat – Ar Revenue By Shri Ajay Kumar Keshari – Cit(Dr) Date Of Hearing 11/12/2024 Date Of Pronouncement 10/03/2025 आदेश/ Order Per Vinay Bhamore, Jm: This Appeal Filed By The Assessee Is Directed Against The Order Of Ld.Add.Commissioner Of Income Tax/Jcit(A)-8, Delhi U/S.250 Of The Income Tax Act, 1961 (Hereinafter Referred To As ‘The Act’), Dated 15.06.2024 For A.Y.2017-18. “1. The A.O. Has Erred In Adding To Income Of Rs.15,54,94,967/- Being Excess Sugar Cane Price Paid To Members & Non Members. The Addition Made By The Assessing Officer Be Deleted.

Section 250Section 3Section 36(1)Section 36(1)(xvii)Section 4Section 5(1)Section 5(3)

Vitthal Sahakar Sakhar Karkhana Ltd, Solapur vs. Assistant Comissioner of Income Tax Circle-1, Solapur

In the result appeal of the Assessee is partly allowed

ITA 1540/PUN/2024[2017-18]Status: DisposedITAT Pune21 Nov 2024AY 2017-18

Bench: Ms.Ashta Chandra & Dr. Dipak P. Ripote. / Ita Nos.1540/Pun/2024 / Assessment Year 2017-18 Shri Vitthal Sahakari Sakar Vs Acit Circle1, Solapur Karkhana Ltd., A/P. Gursale, Tal. Pandharpur, Dist. Solapur-413304 Maharashtra Pan-Aaaas3892H Appellant/ Assessee Respondent / Revenue Assessee By Mr. Hanmant Dhavle (Ar) Revenue By Mr.Arvind Desai (Dr) Addl.Cit Date Of Hearing 21/11/2024 Date Of 31/12/2024 Pronouncement / Order Per Dr. Dipak P. Ripote, Am: This Is An Appeal Filed By The Assessee Directed Against The Order Of Ld.Commissioner Of Income Tax(Appeals)[Nfac] U/Sec.250 Of The Income Tax Act, 1961; Dated 30.04.2024 For The A.Y.2017-18. The Assessee Has Raised The Following Grounds Of Appeal : “1. On The Fact & In The Circumstance Of The Case & In Law Of The Learned National Faceless Appeals Centre (Nfac) Delhi Has Erred In Disallowing & Adding Back An Amount Of Rs.4,56,57,548/- On Account Of Excess Sugar Cane Price

Section 250Section 36Section 36(1)Section 36(1)(xvii)

Krantiagani Dr G D Bapu Lad Sahakari Sakhar Karkhana Limited, Kundal vs. ACIT, Sangli

Appeals are allowed for statistical purposes in above terms

ITA 76/PUN/2024[2020-21]Status: DisposedITAT Pune12 Jun 2024AY 2020-21

Bench: Shri R.K. Panda & Shri Satbeer Singh Godara

For Appellant: Shri Shubhada A. KoppaFor Respondent: Shri Keyur Patel
Section 1Section 154Section 155(19)Section 36(1)(xvii)