Commissioner of Income Tax vs Jyoti Electric Motors Ltd.

M.S. Shah, J.

At the instance of the revenue, the following questions have been referred for the opinion of this court :

"1. Whether the Tribunal is right in law and on facts in deleting the addition made on account of royalty payment as revenue expenditure ?

Whether, the Tribunal is right in law and on facts in holding that if the unpaid statutory liability is paid before filing of the return u/s 139(1) addition cannot be made invoking the provisions of section 43B ?"

At the hearing of the reference learned counsel agree that question No 1 raised in this reference is already concluded by a decision of this court in Commissioner of Income Tax Vs. Ashoka Mills Ltd., . We accordingly answer question No. 1 in the affirmative i.e., in favour of the assessee and against the revenue.

So far as question No. 2 is concerned, learned counsel for the parties agree that the controversy raised in this question is concluded by the decision of the Apex Court in Allied Motors (P.) Ltd. Vs. Commissioner of Income Tax, Delhi, . Learned counsel further state that similar view has been taken by this court in IT Ref. No. 301 of 1992 by order dated 13-4-1998

In view of the above discussion, question No. 2 also is answered in the affirmative, i.e., in favour of the assessee and against the revenue.

The reference accordingly stands disposed of. There shall be no order as to costs.

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