Mahalakshmi Sugar Mills Co. Ltd. vs Commissioner of Income Tax

Arijit Pasayat, C.J.—Heard.

For the assessment years 1966-67 and 1967-68, the following question has been referred u/s 256(1) of the Income Tax Act, 1961 (for short "the Act"), by the Income Tax Appellate Tribunal, Delhi Bench "E", New Delhi (for short "the Tribunal"), for the opinion of this court :

"Whether, on the facts and in the circumstances of the case, the assessed is entitled to the deduction in the computation of its business income of the following amounts of interest paid by the assessed for the non-payment in time of the sugarcane cess and the purchase tax payable by it :

Item Assessment year

1966-67

Rs.

Assessment year

1967-68

Rs.

Interest Payable on arrears of sugarcane cess 78.185 62.092

Interest Payable on arrears of purchase tax 12,203 10,596

90,388 72,688

In the assessor�s own case a similar question came up for consideration of this court (see Mahalaxmi Sugar Mills Company Ltd. Vs. Commissioner of Income Tax, ). The question was answered in favor of the assessed and against the Revenue. Following the view expressed in the aforesaid case, we answer the question referred to us in the affirmative, in favor of the assessed and against the Revenue.

The references are accordingly disposed of.