Y.R.Meena, J. - (1.) On the application of the assessee for the assessment years 1981-82 and 1984-85, the following questions are referred by the Tribunal for our opinion : Assessment Year 1981-82 : "1. Whether, on the facts and in the circumstances of the case and on a proper construction of the agreement between the assessee-company and the M. P. Electricity Board, the Tribunal was right in holding that the liability in respect of additional fuel surcharge arose only when the assessee received the bill from the M.P. Electricity Board?
(2.) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the assessee was not entitled to deduction of liability for additional fuel surcharge amounting to Rs. 25,48,047/- in the assessment year 1981-82?" Assessment Year 1984-85 : "1.Whether, on the facts and in the circumstances of the case and on a proper construction of the agreement between the assessee-company and the M.P State Electricity Board, the Tribunal was right in holding that the liability in respect of additional fuel surcharge arose only when the assessee received the bills from the M.P. State Electricity Board? 2.Whether, on the facts and in the circumstances of the case, the Tribunals was correct in holding that the assessee was not entitled to deduction of liability for additional fuel surcharge amounting to Rs. 6,81,770/- (Rs. 25,48,045/- minus Rs. 18,86,226/-) in the assessment year 1984-85?" 3. Since connected questions are raised in those questions referred by the Tribunal, the short controversy in these questions is whether the liability in respect of additional fuel surcharge arose in the assessment year 1981-82 or 1984-85. We dispose of both the applications by this common order.
(3.) The assessee is a public limited company. It carried on business as a manufacturer of jute goods and caustic soda, chlorine etc. at Hazinagar, Naihati, West Bengal and at Amlai, Shabadol in M.P. respectively. The relevant assessment year is 1981-82 in which the assessee has consumed the electricity and he received a Notice of Demand for additional fuel surcharge in September, 1983. For that, relevant assessment year is 1984-85. The question is whether additional fuel surcharge liability should be allowed in the year when the assessee consumed electricity or it should be allowed in the year when bill for additional fuel surcharge liability is received, that is on 10.11.83, relevant to assessment year 1984-85.;