1998 (4) TMI 41

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....The assessee, New Horizon Sugar Mills Pvt. Ltd., Pondicherry, is a private limited company carrying on business in the manufacture and sale of sugar. The assessment years involved are 1978-79 to 1981-82 for which accounting years ended on June 30, 1977, June 30, 1978, June 30, 1979 and June 30, 1980 respectively. The assessee, inter alia, claimed the amount set apart for the construction of mol....

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....ment and the assessee was not divested of ownership of the income or the asset created. Therefore, the amount set apart for these years were added back as income. On appeal, the claim of the assessee was allowed by the Commissioner of Income-tax (Appeals), by following the order of the Tribunal in the assessee's own case for the assessment year 1977-78 in ITA No. 1244/Mad of 1980, dated July 7,....

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....nding counsel representing the Revenue, and of Mr. P. P. S. Janarthana Raja, learned counsel representing Subbaraya Aiyar, learned counsel appearing for the respondent were heard. An identical question like the one in the instant case arising for consideration came up for consideration before a Division Bench of this court in CIT v. Salem Co-operative Sugar Mills Ltd. (1998] 229 ITR 285. In ....

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....nting year amounted to Rs. 91,476 which the assessee claimed as deduction in the computation of its total income for the assessment year 1975-76. The Tribunal allowed the appeal. On a reference, a Division Bench of this court held that even before collection of the amount as directed by the Central Government under the Molasses Control (Amendment) Order, the assessee was directed to keep this a....