1988 (3) TMI 22

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....wer the following question of law, namely: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in holding that interest paid by the assessee to the sales tax department on the arrears of sales tax was an admissible deduction under section 37 of the Income-tax Act, 1961 ?" The relevant assessment year is 1974-75. The assessee derives income fro....

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....ly point involved for decision is covered by the decision of the Supreme Court in Mahalakshmi Sugar Mills Co. v. CIT [1980] 123 ITR 429. Following that decision of the Supreme Court in respect of the same assessee, this court, for an earlier year of assessment, has held that the interest paid by the assessee to the sales tax department on arrears of sales tax is an admissible deduction under secti....