1985 (8) TMI 40

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.... J. S. VERMA J.-The questions of law referred by the Tribunal to this court for its decision under section 256(1) of the Income-tax Act, 1961, involve substantially only one point, namely, whether the Tribunal was justified in allowing the deduction of Rs. 32,480 imposed as penalty under section 8(2) of the M. P. General Sales Tax Act as a business expenditure under section 37(1) of the Income-....

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....the tax payable at full rate and the tax payable at concessional rate or it was an amount in excess of this difference. It was held that where the amount depicted only the difference between the tax at full rate and the tax at concessional rate, it should be allowed as a deduction under section 37(1) of the Income-tax Act, 1961. On the other hand, if the amount of penalty is an amount in excess of....

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....trial court does not take into account this distinction and apparently, for this reason, the factual position in the present case has not been stated. Since the reference is required to be decided by us on the basis of the facts stated in the statement of case, it is not possible to answer the question referred on the basis of the incomplete statement of case which does not set out this significan....