9911796707
TMI Blog1986 (2) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... y, royalty was payable by the assessee to the State Government for every month by the 15th day of the next month, failing which interest at the rate of 12 per cent. per annum became payable on the amount of royalty in arrears by the assessee. In the assessment year 1970-71, the corresponding accounting period ending on the Ram Navami day, being some time in April of the year 1970-71, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 30,010. The Appellate Assistant Commissioner held that the liability for payment of interest would arise in the hands of the assessee only on issue of a notice of a public demand raised by the Certificate Officer. Till such notice was issued, it could not be said that there was any liability to pay interest on outstanding royalty. The Appellate Assistant Commissioner confirmed the decision of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee in its accounts for meeting the said liability which had accrued. The claim of the assessee was allowed. On an application of the Revenue under section 256(1) of the Incometax Act, 1961 (" the Act "), the following question has been referred as question of law arising out of the order of the Tribunal for the opinion of this court : " Whether, on the facts and in the circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct is not warranted We agree with the conclusion of the Tribunal on this point. Both before the Appellate Assistant Commissioner and before the Tribunal, particulars of interest as accruing on the arrears of royalty during the relevant period had been given and on the basis thereof, the Tribunal was entitled to allow the assessee the deduction claimed which was little less than the amount of the i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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