- (1.) THE Income Tax Appellate Tribunal, Allahabad has referred the following three questions of law under section 256(1) of the Income Tax Act, 1961 (hereinafter referred to as the Act) for opinion to this Court: '1. Whether on facts and in law the ITAT is justified in confirming the order of the Commissioner (Appeal) in allowing the assessees claim of Rs. 5,11,002 and Rs. 1,86,215 in respect of interest on excess realisation of levy sugar price by holding that it was on admissible deduction
(2.) WHETHER on the facts and in law the ITAT is justified in confirming the order of the Commissioner (Appeal) allowing the assessees claim of Rs. 1,01,275 on account of interest on arrears of cane price and commission by holding that it was an admissible deduction? Whether on facts and in law the ITAT is justified in confirming the order of the Commissioner (Appeal) in allowing the assessees claim of Rs. 1,56,100 on account of interest on arrears of sugar cane price and commission?' 2. The reference relates to the assessment year 1982 -83. 3. Briefly stated the facts giving rise to the present case are as under : The respondent assessee -company is engaged in manufacture and sale of sugar manufactured in its two units namely Ganesh Sugar Mills and Sri Anand Sugar Mills. In the course of assessment proceeding of the assessee -company it was noted that in the computation of the total income the assessee had claimed interest on excess realization of levy sugar price as under : Crushing Ganesh Mills Shri Anand Sugar Mills Total 1973 -74 1,76,670.37 38,096.70 2,14,694.07 1978 -79 3,34,332.43 1,48,118.58
(3.) ,88,457.01;