2004 (9) TMI 38

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....as referred the following two questions of law under section 256(1) of the Income-tax Act, 1961, hereinafter referred to as "the Act", for the opinion to this court. "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in confirming the Commissioner of Income-tax (Appeals) order allowing interest accrued on excess levy sugar price of Rs. 9,82,343? 2. Whether....

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....ioner of Income-tax (Appeals) deleted the addition following his earlier order for the assessment year 1979-80. The Tribunal has upheld the order of the Commissioner of Income-tax (Appeals) of this assessment year by following its earlier orders for the assessment years 1976-77 and 1977-78. During the assessment year in question the Income-tax Officer has made an addition of Rs. 3.60 lakhs as e....

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....s suffered by the said subsidiary were to the tune of Rs. 12.95 lakhs and, therefore, there was very little possibility of even realisation of the principal amount from the subsidiary. The Tribunal has upheld the order of the Commissioner of Income-tax (Appeals) on this point also on the ground that the interest had not been charged as commercial expediency considering the weak financial position ....

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.... Respectfully following the aforesaid decision we are of the opinion that the Tribunal, was justified in upholding the deletion of Rs. 9,82,343 towards interest accrued on excess levy sugar price. So far as the question of deletion of Rs. 3.60 lakhs is concerned we find that the Commissioner of Income-tax (Appeals) as also the Tribunal had recorded a categorical finding that it was on account of ....