DHAMPUR SUGAR MILLS LTD Vs. COMMISSIONER OF INCOME TAX
LAWS(ALL)-2003-4-186
HIGH COURT OF ALLAHABAD
Decided on
April 29,2003
DHAMPUR SUGAR MILLS LTD
Appellant
VERSUS
COMMISSIONER OF INCOME TAX
Respondents
JUDGEMENT
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(1.) HEARD learned counsel for the parties.
(2.) THIS is an Income Tax Reference raising the question:'Whether, on the facts and in the circumstances of the cases, the Tribunal was right in disallowing the deduction of an aggregate sum of Rs. 2,02,640 payable by the assessee as interest under section 3(3) of the U.P. Sugarcane (Purchase Tax) Act, 1961 in the computation of its business profits for the assessment year 1975 -76 ?'
It has been categorically held by a Full Bench's decision of this court in a case of Triveni Engg. Works Ltd. v. CIT 1983 UPTC 1261, that interest paid on sugarcane purchase tax arrears under the provisions of U.P. Sugarcane (Purchase Tax) Act, 1961 as an allowable deduction under the Income Tax Act, 1961, and in deleting thereby the disallowance of interest. The same view has been taken on sole question No. 1 in the case of Dhampur Sugar Mills Ltd. v. CIT : [1991]188ITR787(All) . Thus, in view of the judgment we answer reference in favour of the assessee and against the revenue. ;
(2.) THIS is an Income Tax Reference raising the question:
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