Usha Sales Ltd. vs Commissioner Of Income Tax
2001 Latest Caselaw 1104 Del

JUDGMENT

Arijit Pasayat, C.J.

1. At the instance of the assessed, the following questions have been referred for the opinion of this court under Section 256(1) of the Income-tax Act, 1961 (in short "the Act"), by the Income-tax Appellate Tribunal, Delhi Bench "C" (hereinafter referred to as "the Tribunal"):

"1. Whether, on the facts and in the circumstances of the case, the liability of Rs. 2,92,319 incurred by way of interest under various sections of

the Income-tax Act was an allowable deduction in computing the profits and gains of the assessed for the accounting period relevant to the assessment year 1974-75 ?

2. Whether, on the facts and in the circumstances of the case, the liability to pay surtax is an allowable deduction in computing the total income of the assessed for the accounting period relevant to the assessment year 1974-75 ?"

2. The factual position need not be gone into in detail as issues involved in the questions have been directly dealt with by the apex court. So far as the first question is concerned, the decision of the apex court in Bharat Commerce and Industries Ltd. v. C1T [1998] 230 ITR 733, will govern the question. The answer to the question, therefore, is in the negative, in favor of the Revenue and against the assessed. So far as the second question is concerned, also the decision of the apex court in Smith Kline and French (India) Ltd. v. CIT [1996] 219 ITR 581, will govern the question. The answer to the question is in the negative, in favor of the Revenue and against the assessed.

3. The reference stands disposed of.