Mahalakshmi Sugar Mills Co. Ltd. vs Commissioner Of Income-Tax
2000 Latest Caselaw 622 Del

JUDGMENT

Arijit Pasayat, C.J.

1. Heard.

2. For the assessment years 1966-67 and 1967-68, the following question has been referred under Section 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 assessee is entitled to the deduction in the computation of its business income of the following amounts of interest paid by the assessee 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 assessee's own case a similar question came up for consideration of this court (see Mahalaxmi Sugar Mills Co. Ltd. v. CIT [1986] 157 ITR 683). The question was answered in favour of the assessee and against the Revenue. Following the view expressed in the aforesaid case, we answer the question referred to us in the affirmative, in favour of the assessee and against the Revenue.

3. The references are accordingly disposed of.