TMI Blog2004 (9) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income-tax (Appeals) order deleting addition of ₹ 3.60 lakhs as estimated interest on debit balance of Dhampur Yeast Co. Ltd., which was, subsidiary of the assessee-company?" - We answer both the questions of law referred to us, in the affirmative, i.e., in favour of the assessee and against the Revenue. - ITR No. 196 of 1985 - - - Dated:- 30-9-2004 - Judge(s) : R. K. AGA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present reference are as follows: The respondent is a public limited company engaged in the business of manufacture and sale of sugar by vacuum pan process. For the assessment year 1978-79, it had claimed a sum of Rs. 9,82,343 as interest on excess levy sugar price which was disallowed by the Income-tax Officer on the ground that it was a provision and not an ascertained liability and could ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... years but no interest has been charged in the year in question, the Income-tax Officer had observed that the respondent was paying heavy interest on the loans obtained from banks, etc., and, therefore, considering the opening debit balance in the Dhampur Yeast Co. Ltd.'s, account the addition was made. The aforesaid addition was deleted by the Commissioner of Income-tax (Appeals) on the ground th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 983, (CIT v. Dhampur Sugar Mills Ltd. (No. 1) [2005] 274 ITR 340) decided on August 25, 2004, which relates to the assessment year 1974-75 had held that in respect of the liability for payment of interest chargeable under the Levy Sugar Price Equalisation Fund Act, 1976, accrued only after April 1, 1976. In the present case the assessment year in question is 1978-79, therefore, liability had accru ..... X X X X Extracts X X X X X X X X Extracts X X X X
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