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TMI Blog1991 (2) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... e following question to this court: "Whether, on the facts and circumstances of the case, the Tribunal was tight in disallowing an amount of Rs. 32,235 claimed by the assessee to be deductible on account of payment of interest towards sales tax arrears ?" The assessee is a registered firm and the assessment year concerned herein is 1972-73. The assessee was also a sales tax payee. For the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Against this demand, the petitioner filed a writ petition in this court and obtained stay on August 3, 1970. Later, the writ petition was dismissed and the stay vacated. The petitioner obtained special leave to appeal to the Supreme Court on March 16, 1971. This court also stayed realisation of part of the interest amount demanded and directed payment of the other part. Presumably, in pursuance o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which stops the accrual of interest because of a stay order. It reiterates that liability to pay interest accrues by operation of statutory provisions and that it requires not even a notice of demand to make it payable. The main question in this case is whether the aforesaid amount of Rs. 32,992 paid towards interest in the accounting year (relevant to the assessment year 1972-73) can be claimed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... down in a decision of the Supreme Court in Kedarnath jute Manufacturing Co. Ltd. v. CIT [1971] 82 ITR 363. Sri Vikram Gulati who assisted us as amicus curiae in this case brought to our notice certain decisions which on perusal, we find, turned on their own facts. The nearest case is the one in Addl. CIT v. Rattan Chand Kapoor [1984] 149 ITR 1 (Delhi). It was a case where the assessee was follow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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