1997 (10) TMI 31 - HC - Income Tax

Summary

The High Court of Madras ruled in favor of the assessee, a private limited company in the business of sugar manufacturing. The court held that the amount set apart towards molasses storage fund account and molasses storage tank fund account should be excluded from the total income as a diversion of income by overriding title. The decision was based on a similar precedent and the court reframed the question accordingly. The Revenue's challenge was dismissed, and there were no costs awarded.