2003 (3) TMI 57

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....by R. JAYASIMHA BABU J.-The questions referred, at the instance of the Revenue are: "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the provision of Rs. 2,19,163 made to the Molasses Storage Fund is an allowable deduction? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in....

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....avour of the assessee having regard to the law laid down by this court in CIT v. Salem Co-operative Sugar Mills Ltd. [1998] 229 ITR 285, wherein it was held that as the Molasses Control Order provides that a portion of the sale price should be accounted for and funded separately for providing adequate storage facilities in accordance with the guidelines prescribed by the Government and the schedul....

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....re incentives given exclusively for the purpose of repayment of loan borrowed for the purpose of meeting part of the capital cost from financial institutions and therefore were not revenue receipts. Following that decision, the second question is required to be and is answered in favour of the assessee. Regarding the third question, that question is also required to be answered in favour of the....