R. C. Lahoti, J. - (1.) By the impugned order of the High Court the following question of law referred by the Income-tax Appellate Tribunal to the High Court under Section 256(1) of the Income-tax Act, 1961 has been answered in the negative, i.e., in favour of the Revenue and against the assessee:-"Whether on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in upholding the order of the Commissioner of Income-tax deleting Rs. 14,96,130/- being the excess realisation over and above the authorised price on sale of sugar -
(2.) The aggrieved assessee has come up in appeal.
(3.) The appellant company manufactures sugar and other items. It follows mercantile system of accounting. In the assessment year 1972-1973 levy price of sugar was fixed at Rs. 120.30 paise per quintal. The appellant challenged the order appointing ceiling on the price of the sugar by filing a writ petition in the High Court. On 31-3-1970 the High Court of Andhra Pradesh passed an interim order which inter alia read as under:- ". . . . . . . . . . . . . . . . . . . . .the operation of notification issued by the respondent herein namely the Union of India, Ministry of Food and Agriculture, Community Development and Co-operation, New Delhi dated 20-2-70 and 1-3-70 in so far as it relates to Zone No. 2 BE AND HEREBY is suspended pending further orders on this petition and IT IS FURTHER ORDERED that the petitioners BE AND HEREBY are permitted to sell sugar at the rate pervailing prior to the SAID NOTIFICATION, i.e. at Rs. 131.01 plus excise duty pending further orders on this petition." ;