1990 (9) TMI 8 - SCH - Income Tax

Whether, on the facts and in the circumstances of the case, the Tribunal was justified in disallowing the interest payable under the U. P. Sugarcane Purchase Tax Act, 1961, for the assessee s failure to pay the cane cess and purchase tax - held that Interest paid on delayed payment of cane cess and purchase tax is allowable as a business expenditure.

Summary

The Supreme Court dismissed the appeals regarding disallowance of interest under the U.P. Sugarcane Purchase Tax Act, 1961 for failure to pay cane cess and purchase tax for the assessment years 1969-70 and 1970-71. The High Court's decision in favor of the assessee was upheld based on precedent. No costs were awarded.