1991 (10) TMI 13

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....acts and in the circumstances of the case, the Tribunal was right in law and fact in holding that it cannot be called that the amount of Rs. 1,33,000 is an unascertained liability during the year ?" The respondent, a public limited company, is an assessee under the Income-tax Act. It is a bulk consumer of electricity. The electricity supply tariff was revised with effect from July 1, 1975. The challenge against the said increase by the assessee was futile. The decision so rendered by the High Court was in August, 1976. We are concerned herein with the assessment year 1977-78 for which the accounting period ended on December 31, 1976. The assessee was directed to pay at the enhanced rate of tariff. Demand notices were served on the assess....

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....ies Ltd. Thereafter, at the instance of the Revenue, the Income-tax Appellate Tribunal has referred the above two questions for the decision of this court. We heard counsel. In the statement of the case dated January 29, 1988, in paragraph 6, the Appellate Tribunal has stated that the issue regarding deductibility of interest came tip before the Tribunal for the assessment year 1976-77. In its appellate order dated July 30, 1984, the Appellate Tribunal only followed its order in I.T.A. No. 56(Coch)/1981, dated November 6, 1982, in the case of Travancore Electro-Chemical Industries Ltd., which is annexure-D to the paper book. There, the question was whether the interest paid is penalty and so an expenditure for infraction of law and in th....