1998 (4) TMI 60

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....nal sought for a reference and the Appellate Tribunal has stated the case and the following three questions of law relating to the assessee's assessment year 1979-80 have been referred to us for our consideration : "(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that interest payment of Rs. 1,49,379 paid to ex-service operators of th....

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....ndividual operators on the compensation payable to them on taking over of the business by the assessee. This court earlier struck down the Ordinance acquiring the undertaking as being unconstitutional. The Income-tax Officer disallowed the interest payment on the ground that this court has struck down the provisions of the Act and, therefore there was no liability to pay interest. At the time when....

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....tors qualified for deduction is sustainable in law and, accordingly we are of the view that there is no infirmity in the view of the Appellate Tribunal that has been taken. The second question relates to deduction of a sum of Rs. 5 lakhs paid to the assessee being contribution to the Cheran Welfare Trust. A similar matter in the assessee's own case for an earlier assessment year came up for consi....