1988 (1) TMI 11

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....disposal of Misc. Cases Nos. 469, 470, 471 and 472 of 1983 (CIT v. Gwalior Sugar Co. (P) Ltd., Dabra) also. The Gwalior Sugar Company (P) Ltd., which is the opposite party in these cases, in proceedings for assessment with regard to different assessment years, claimed certain deductions. In order to appreciate the nature of the deductions claimed, it may be pointed out that the assessee, which is....

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.... in order to help it out, the assessee advanced loans of substantial amounts to it and also paid extra price for the sugarcane supplied by it. The assessee had also to forgo certain amounts of interest payable by the agricultural company on the loans advanced to it as aforesaid. It is the amount of extra price so paid and the interest which was forgone which were sought to be deducted from its inc....

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....f the assessee or, in other words should have been incurred to facilitate the carrying on of the business of the assessee on considerations of business expediency. No dispute has been raised before us in regard to the principles enunciated by the Full Bench and followed in the instant cases. Applying those principles, this court answered the questions referred to it in favour of the assessee-compa....

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....acts and in the light of the circumstances of this case, those principles were applicable or not. In India Machinery Stores (P.) Ltd. v. CIT [1970] 78 ITR 50 (SC), it was held in paragraph 12 of the report (at p. 54) "that under section 66( 1 ) and (2) of the Indian Income tax Act, 1922, only a question of law may be referred to the High Court for opinion, but the right to obtain a certificate und....