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Bhowra Kankanee Collieries Limited Vs. Commissioner of Income-tax - Court Judgment

LegalCrystal Citation
SubjectDirect Taxation
CourtKolkata High Court
Decided On
Case NumberIncome-tax Reference No. 528 of 1973
Judge
Reported in[1985]156ITR201(Cal)
ActsIncome Tax Act, 1961 - Section 37
AppellantBhowra Kankanee Collieries Limited
RespondentCommissioner of Income-tax
Excerpt:
- ghose, c.j. 1. in this reference under section 256(1) of the i.t. act, 1961, the following question of law was referred :' whether, on the facts and in the circumstances of the case, the tribunal was justified in holding that the sum of rs. 12,397 being interest paid for late payment of royalty to the government of bihar was not an admissible deduction in computing the total income for the assessment year 1964-65 '2. in view of the judgment of the supreme court in the case of mahalaxmi textile mills co. ltd. v. cit : [1980]123itr429(sc) , the question is answered in the negative and in favour of the assessee. there will be, however, no order as to costs.r.n. pyne, j. 3. i agree.
Judgment:

Ghose, C.J.

1. In this reference under Section 256(1) of the I.T. Act, 1961, the following question of law was referred :

' Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the sum of Rs. 12,397 being interest paid for late payment of royalty to the Government of Bihar was not an admissible deduction in computing the total income for the assessment year 1964-65 '

2. In view of the judgment of the Supreme Court in the case of Mahalaxmi Textile Mills Co. Ltd. v. CIT : [1980]123ITR429(SC) , the question is answered in the negative and in favour of the assessee. There will be, however, no order as to costs.

R.N. Pyne, J.

3. I agree.


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