Suhas Chandra Sen, J. - (1.) The Tribunal has referred the following question of law to this court under Section 250(1) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in treating the contribution to Molasses Storage Reserve Fund created under the U. P. Sheera Niyantran (Sansodhan) Adesh, 1974, as a revenue expenditure"
(2.) The assessment year is 1980-81 for which the relevant accounting year ended on June 30, 1979. The facts found by the Tribunal are as under: "The assessee is a limited company. The assessment year involved is 1980-81. The business of the assessee-company is manufacture and sale of sugar. During the relevant accounting year, the assessee-company made a reserve of Rs. 47,084 under the head "Molasses Storage Reserve Fund" and claimed the same as revenue expenditure. The Income-tax Officer did not entertain the claim of the assessee in that regard."
(3.) On appeal, the Commissioner of Income-tax (Appeals) held as under: "Contribution to Molasses Storage Reserve Fund Rs. 47,084 There is no change in the facts and/or in law. Following my orders for the earlier assessment years, I direct the Income-tax Officer to allow similar relief in the assessment year under consideration also.";