Usha Sales Ltd. Vs. Commissioner of Income Tax - Court Judgment |
| Direct Taxation |
| Delhi High Court |
| Aug-06-2001 |
| I.T.R. No. 209 of 1983 |
| Arijit Pasayat, C.J. and; D.K. Jain, J. |
| [2002]254ITR145(Delhi); [2001]119TAXMAN472(Delhi) |
| Income Tax Act, 1961; Companies (Profits) Surtax Act, 1964 |
| Usha Sales Ltd. |
| Commissioner of Income Tax |
| S.K. Aggarwal, Adv |
| Sanjiv Khanna and ; Ajay Jha, Advs. |
a) it was held that as per import policy, 1979-80, interest incurred by assessed due to default in discharge of statutory duties would not be deductable in computing the profits and gains of assessedb) it was held that surtax is not deductable in computing total income of assessed under section 40(a)(ii) of the income tax act, 1961 - .....1961 (in short 'the act'), by the income-tax appellate tribunal, delhi bench 'c' (hereinafter referred to as 'the tribunal'):'1. whether, on the facts and in the circumstances of the case, the liability of rs. 2,92,319 incurred by way of interest under various sections ofthe income-tax act was an allowable deduction in computing the profits and gains of the assessed for the accounting period relevant to the assessment year 1974-75 ? 2. whether, on the facts and in the circumstances of the case, the liability to pay surtax is an allowable deduction in computing the total income of the assessed for the accounting period relevant to the assessment year 1974-75 ?' 2. the factual position need not be gone into in detail as issues involved in the questions have been directly dealt with by the apex court. so far as the first question is concerned, the decision of the apex court in bharat commerce and industries ltd. v. c1t : [1998]230itr733(sc) , will govern the question. the answer to the question, thereforee, is in the negative, in favor of the revenue and against the assessed. so far as the second question is concerned, also the decision of the apex court in smith kline and.....
Arijit Pasayat, C.J.
1. At the instance of the assessed, the following questions have been referred for the opinion of this court under Section 256(1) of the Income-tax Act, 1961 (in short 'the Act'), by the Income-tax Appellate Tribunal, Delhi Bench 'C' (hereinafter referred to as 'the Tribunal'):
'1. Whether, on the facts and in the circumstances of the case, the liability of Rs. 2,92,319 incurred by way of interest under various sections ofthe Income-tax Act was an allowable deduction in computing the profits and gains of the assessed for the accounting period relevant to the assessment year 1974-75 ?
2. Whether, on the facts and in the circumstances of the case, the liability to pay surtax is an allowable deduction in computing the total income of the assessed for the accounting period relevant to the assessment year 1974-75 ?'
2. The factual position need not be gone into in detail as issues involved in the questions have been directly dealt with by the apex court. So far as the first question is concerned, the decision of the apex court in Bharat Commerce and Industries Ltd. v. C1T : [1998]230ITR733(SC) , will govern the question. The answer to the question, thereforee, is in the negative, in favor of the Revenue and against the assessed. So far as the second question is concerned, also the decision of the apex court in Smith Kline and French (India) Ltd. v. CIT : [1996]219ITR581(SC) , will govern the question. The answer to the question is in the negative, in favor of the Revenue and against the assessed.
3. The reference stands disposed of.