- (1.) At the instance of the Revenue, the Income-tax Appellate Tribunal has referred the following question under Section 256(2) of the Income-tax Act, 1961, relating to the assessment year 1068-69 to this court for its opinion : "Whether, on the facts and in the circumstances of the case, the assessee-company is entitled to the deduction of Rs. 2,26,970 in computing its income for the assessment year 1968-69 being the amount determined to be payable as additional sugarcane price?"
(2.) Whether a sum of Rs. 2,05,787 representing the sugarcane price is deductible from the computation of the assessor's income of the previous year was referred to this court in CIT v. Janki Sugar Mills Co. Ltd. [1972] 84 ITR 348 and then this court held that a dearly ascertained liability arose during the previous year and that the assessee was entitled to the deduction of that liability against the profit earned by the assessee during the previous year.
(3.) Following the aforesaid authority, we answer the above question referred to us in the affirmative, that is, in favour of the assessee and against the Revenue. No order as to costs.;