Commissioner of Income Tax vs NEW HORIZON SUGAR MILLS (P) LTD.

N.V. Balasubramanian, J.

The Income Tax Appellate Tribunal has stated the case and referred the following question of law in relation to the assessment year 1985-86 of

the assessee for our consideration :

Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the amount set apart by the assessee

towards Molasses Storage Reserve Fund should be excluded from its total income?

It is stated by Mrs. Pushya Sitaraman, learned senior standing counsel appearing for the revenue that the issue raised in the question is covered

against the revenue by the decision of this court against the Commissioner of Income Tax Vs. New Horizon Sugar Mills Pvt. Ltd., , wherein this

court has held that the amount set apart towards molasses storage reserve fund is liable to be excluded from the total income of the assessee.

Accordingly, following the said decision, we answer the question of law referred to us in the affirmative in favour of the assessee and against the

revenue. No costs.