TMI Blog1995 (3) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax Act, the following questions said to be questions of law are sought to be referred to this court for its opinion : " 1. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that the liability of Rs. 10,94,326 on account of surcharge on the electricity consumed was a statutory liability and was an allowable deduction even though it was disputed ? 2. Whether the Income-tax Appellate Tribunal had any material to hold that the monthly bills which included the disputed charges were presented to the assessee in all the earlier months and the entire amount of Rs. 10,94,326 claimed as a deduction pertained to the accounting year relevant to the assessment year 1983-84 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e paid to Haryana Steel Products about Rs. 20 lakhs for annealing and pickling. This account was debited under the head "Salaries and wages". The Assessing Officer found that Haryana Steel Products was a proprietary concern of a family trust of Shri M. K. Mohta, a director of the company, and that the trust has been created for the benefit of the wife, children and grandchildren of Shri M. K. Mohta. The Assessing Officer considered the payment of Rs. 2,500 per metric ton paid to Haryana Steel Products as excessive and unreasonable and, accordingly, the rate of Rs. 600 as a reasonable rate. The assessee, being aggrieved, appealed to the Commissioner of Incometax (Appeals) who after consideration of the claim of the assessee found that Rs. 2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We have heard learned counsel for the Revenue as also learned counsel for the assessee. It is contended by learned counsel for the Revenue that all the four questions sought to be raised in this application are questions of law and that the Tribunal was wrong in coming to the contrary conclusion. We have been taken through the contents of questions Nos. 1 and 2 and on perusal of the same, we find that the finding recorded by the Tribunal to the effect that electric surcharge is a statutory liability is by now a settled issue. Learned counsel appearing for the Revenue also could not dispute about the correctness of the aforesaid findings. In that view of the matter, in our opinion, the answer to the said question would be merely acad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether question No. 1 as set out in the application filed by the assessee, is a question of law and whether the said question is fit to be referred to this court for its opinion. We set out the said question hereunder : " 1. Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in holding that the provisions of section 40A(2) were attracted ? " We have heard learned counsel for the assessee as also learned counsel for the Revenue. It is contended by learned counsel for the assessee that the question of law sought to be raised is a question of law and the Tribunal was wrong in not referring the same to this court for its opinion. Learned counsel appearing for the Revenue during the course of his argument ..... X X X X Extracts X X X X X X X X Extracts X X X X
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