2000 (11) TMI 84

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....ng the assessment year 1981-82, the assessee who is a manufacturer of sugar had collected a sum of Rs. 40,50,570 from the buyers in excess of the price fixed for sale of levy sugar after it had obtained interim order from the court permitting it to do so subject to certain conditions. The amount so collected was kept in suspense account and was liable to be refunded in the event of the assessee....

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....igh Courts of Karnataka, Bombay and Andhra Pradesh, respectively, in the case of CIT v. Mysore Sugar Co. Ltd. [1990] 183 ITR 113 ; CIT v. Seksaria Biswan Sugar Factory Pvt. Ltd. [1992] 195 ITR 778 and CIT v. Chodavaram Co-operative Sugars Ltd. [1987] 163 ITR 420. The court noted that in those cases the receipt of the amount by the assessee was clearly associated with liability to refund the amount....