9911796707
TMI Blog2004 (9) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... the following question of law under section 256(1) of the Income-tax Act, 1961 ('the Act') for opinion to this Court: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in confirming the deletion of ₹ 11,38,507 on account of interest on the amount of excess levy sugar price claimed by the assessee for the assessment year 197 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt for the previous year relevant to assessment year 1976-77. The claim was disallowed in that year for the reasons detailed in the assessment order. The assessee has deduced the full amount of interest up to 30-9-1976 amounting to ₹ 31,52,222 in the accounts this year and has claimed it as a deduction. The claim cannot be accepted for the reasons detailed below : "(a)the excess levy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has not been accepted by the department and a reference has been filed in assessment year 1975-76. (e)As the amount of interest in past years was disallowed and because it is not related to this year, the whole amount debited in account this year is to be added back. Add ₹ 31,52,222." In the appeal preferred by the respondent, the Commissioner of Income-tax (Appeals) has all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the provisions of Levy Sugar Price Equalization Fund Act, 1976 has held that liability of interest accrued after 7th April, 1976 and not before that date. Since liability for payment of interest amounting to ₹ 11,38,507 is relatable to the assessment year in question, the Tribunal was justified in allowing its deduction. We are in respectful agreement with the view taken by the Court in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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