TMI Blog1999 (6) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... its income for the assessment years 1975-76 and 1976-77, respectively ?" The assessee is a sugar factory engaged in the business of manufacture and sale of sugar. The Government of India, by notification dated November 20, 1973, issued under the Sugar (Price) Determination Order, 1973, fixed the price of levy sugar of D-29 grade at Rs. 153.39 per quintal inclusive of excise duty. By another notification dated December 14, 1973, the Government of India revised the price and fixed the same at Rs. 155.30 per quintal. Aggrieved by these notifications, the assessee filed a writ petition in the Allahabad High Court challenging the Sugar (Price) Determination Order, 1973. The Allahabad High Court passed an interim order. Pursuant to the said ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deposit the said amount with the fund and the amount in question continued to remain with the assessee. In the assessment of the assessee for the assessment years 1975-76 and 1976-77, the Income-tax Officer treated the amount of excess collection made by the assessee during the previous years relevant to the above assessment years as income of the assessee and assessed the same in the hands of the assessee in the assessments for those years, The assessee appealed to the Commissioner of Income-tax (Appeals) against the above orders. The Commissioner of Income-tax (Appeals), following the decision of the Income-tax Appellate Tribunal ("the Tribunal") in the case of Hindustan Sugar Mills Ltd. for the assessment year 1973-74 wherein the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision of the Supreme Court in CIT v. Hindustan Housing and Land Development Trust Ltd. [1986] 161 ITR 524. The decision of this court in CIT v. Seksaria Biswan Sugar Factory P. Ltd. [1992] 195 ITR 778 was followed in CIT v. Hindustan Sugar Mills Ltd. [1994] 122 CTR 37 (Bom). In the case before us, the Tribunal has followed its own decision in CIT v. Hindustan Sugar Mills Ltd. which now stands confirmed by the opinion of this court in the cases cited above. We have also perused the decision of the Andhra Pradesh High Court in CIT v. Chodavaram Co-operative Sugars Ltd. [1987] 163 ITR 420. As in the present case, in that case too the controversy was whether collection made by the assessee in excess of the price fixed by the Government pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount in question only pursuant to the interim order made by the court which was subject to several conditions to make the right absolute and, therefore, the collection made by the assessee at an enhanced rate is an inchoate one as this extra amount did not accrue to the assessee until the finalisation of the dispute pending before one court or the other. It is only on the final determination of the amount that the right to such income in the nature of levy price would arise or accrue and till then there is no liability in praesenti in respect of the additional amount of price claimed by the assessee. Therefore, these cases fall within the scope of the first class of cases noticed by the Supreme Court in Hindustan Housing and Land Develo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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