Joint Commissioner of Income Tax vs Haryana Co-operative Sugar Mills Ltd.

In this appeal filed u/s 260A of the Income Tax Act, 1961, the appellant has prayed for determination of the following questions of law :

"1. Whether the Tribunal was right in accepting the assessee''s contention that the disallowance of Rs. 7,22,458 represented production incentive without recording any finding on the Assessing Officer''s findings recorded in the assessment order in para. 8, that the assessee was not able to support its claim of it being production incentive by production of records ?

Whether the Tribunal was right in deleting the disallowance of Rs. 7,22,458 by relying upon the Delhi High Court ruling in the case of Commissioner of Income Tax Vs. Autopins (India), and the Madras High Court in CIT v. Sivanandha Mills Ltd. [1985] 156 ITR 629 ?"

We have heard Shri Sawhney and have carefully gone through the detailed order passed by the Income Tax Appellate Tribunal. In our opinion, the reasons assigned by the Tribunal for allowing relief to the respondent do not suffer from any legal error giving rise to a question of law. Hence, the appeal is dismissed.