Over 2 lakh Indian cases. Search powered by Google!

Case Details

DHAMPUR SUGAR MILLS LTD versus C.I.T.

High Court of Judicature at Allahabad

Case Law Search

Indian Supreme Court Cases / Judgements / Legislation

Judgement


Dhampur Sugar Mills Ltd v. C.I.T. - INCOME TAX REFERENCE No. 254 of 1983 [2004] RD-AH 456 (5 August 2004)

 

This is an UNCERTIFIED copy for information/reference. For authentic copy please refer to certified copy only. In case of any mistake, please bring it to the notice of Joint Registrar(Copying).

HIGH COURT OF JUDICATURE OF ALLAHABAD

COURT NO.37

I.T. R. NO.254 OF 1983

Dhampur Sugar Mills Ltd., Dhampur                 ........Applicant

Versus

The Commissioner of Income-tax,

Lucknow.                                                      .....Respondent

----------  

Hon'ble R.K. Agarwal, J.

Hon'ble K.N. Ojha, J.

The Income Tax Appellate Tribunal, Allahabad has referred the following question of law under Section 256(1) of the Income Tax Act, hereinafter referred to as an Act, for opinion of this Court.

"Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in disallowing the sum of Rs.31,415 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 1976-77.?"

We have heard Shri Rakesh Ranjan Agarwal, learned counsel for the applicant and Shri A.N. Mahajan, learned counsel for the Revenue.   The question as to whether the interest paid on the amount of purchase tax under Section 3 (3) of the U.P.Sugarcane Purchase Act is  allowable deduction or not has been considered by five judges Bench of this Court in the case of Triveni Engineering Works Ltd. Vs. Commissioner of Income Tax 1983 (144) ITR 732 wherein this Court has held that interest on late payment of sugar cane purchase tax is an allowable deduction.  It has over ruled the decision of the earlier Full Bench decision in the case of Saraya Sugar Mills (P) Ltd., Vs. Commissioner of Income Tax (1979)116 I.T.R. 387 which has been referred and relied upon by the Tribunal in the present case.  It may be mentioned here that the five judges Bench decision of this Court in the case of Triveni Engineering Works (Supra) has been approved by the Hon'ble Supreme Court in the case of Eachmandas Mathuradas Das Vs. Commissioner of Income Tax (2002)254 I.T.R. 799.  Thus, the applicant was entitled for deduction for the amount of interest which it had paid on arrears of sugarcane purchase tax.  

In view of the foregoing discussions, we answer the question of law referred to us in the negative, i.e, in favour of the assessee and against the Revenue.  However, the parties shall bear their own costs.

Dated : 5/8/04

L.F.


Copyright

Reproduced in accordance with s52(q) of the Copyright Act 1957 (India) from judis.nic.in, indiacode.nic.in and other Indian High Court Websites

Advertisement

dwi Attorney | dui attorney | dwi | dui | austin attorney | san diego attorney | houston attorney | california attorney | washington attorney | minnesota attorney | dallas attorney | alaska attorney | los angeles attorney | dwi | dui | colorado attorney | new york attorney | new jersey attorney | san francisco attorney | seattle attorney | florida attorney | attorney | london lawyer | lawyer michigan | law firm |

Tip:
Double Click on any word for its dictionary meaning or to get reference material on it.