TMI Blog1979 (8) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case, the Tribunal was right in holding that the interest payments on arrears of cane price and purchase tax were admissible, deductions in the computation of the total income of the assessee ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the payment of Rs. 1,16,996 on account of guarantee commission paid by the assessee to its di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us. We have heard the parties and given our due consideration to all the circumstances. We find that the decision of the AAC for assessment year 1963-64 on which reliance was placed for the present year was reversed in second appeal by the Tribunal. The entire guarantee commision of Rs. 1,49,484 was held allowable. The learned members constituting the Bench had further observed that the payment c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the directors and the shareholders. The Tribunal has discussed the necessity which obliged the assessee to furnish that security. It was noted that in case the same was not done, the assessee might have been required to pay a larger amount of interest. Respectfully following that decision, we hold that the entire guarantee commission was allowable in the present year. It is directed accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o far as the third question is concerned, as the answers to the first two questions will be reflected in the surtax assessment, the relief which the Tribunal should have granted, should be in consonance with the answers given to the first and second questions. We, therefore, answer the first question in the negative and the second question in the affirmative. As for the third question, surtax re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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