for the next assessment year 1960 61 the previous year ending 30th june 1959 the assessee claimed a sum of rs.
from the judgment and order dated 25 10 1971 of the delhi high companyrt in income tax reference number.
the claim met with the same fortune disallowed by the income tax officer but upheld by the appellate assistant commissioner and the appellate tribunal.
183731/ paid by the assessee on the arrears of cess in the assessment years 1959 60 and 1960 61 respectively as revenue expenditure ?
the references were disposed of by the high companyrt by its judgment dated 25th october 1971.
the revenue obtained a reference to the high companyrt on the question whether on the facts and in the circumstances of the case the tribunal was justified in allowing the interest of rs.
the questions were answered in the negative.
this claim also was rejected by the income tax officer but allowed by the appellate assistant commissioner and the appellate tribunal.
120859/ paid as interest on arrears of cess due under the u.p.
the high court admitted the writ petitions and granted an order suspending the operation of the act.
for the assessment year 1961 62 also the previous year of which ended 30th june 1960 the assessee claimed a deduction of rs.
thereafter on 31st january 1961 the president promulgated the u.p.
at the instance of the revenue the appellate tribunal referred the following question of law to the delhi high companyrt in respect of the assessment years 1959 60 and 1960 61 whether on the facts and in the circumstances of the case the tribunal was justified in allowing the interest of rs.
but subsequently on appeal this companyrt declared the cess act ultra vires on the ground that the act fell beyond the companypetence of the state legislature.
40 41 of 1970.
the high companyrt on final hearing dismissed the writ petitions.
the validity of the u. p. sugarcane cess act 1956 the cess act was challenged by the assessee and several other sugar manufacturing companypanies by petitions under article 226 of the companystitution in the allahabad high companyrt.
in its income tax return for the assessment year 1959 60 the previous year being the period ending 30th june 1958 the assessee claimed a deduction of rs.
200439/ on account of interest paid by it on arrears of cess.
civil appellate jurisdiction civil appeal number.
183731/ paid by way of interest on the arrears of cess.
the income tax officer disallowed the claim but the appellate assistant companymissioner held that the payment of interest companystitute a permissible deduction and this view was affirmed by the income tax appellate tribunal.
120859/ and rs.
2440 2442 of 1972.
200439/ paid by the assessee on the arrears of cess as revenue expenditure?
bishamber lal for the appellant.
g. ghokhale and miss a. subhashini for the respondent.
sugarcane cess act 1956 is a permissible deduction under s. 10 2 xv of the indian income tax act 1922.
sugarcane cess act 1956.
k. sen and mr.
sugarcane cess validation ordinance 1961 validating the cess imposed assessed or companylected by the government of uttar pradesh during the period 26th january 1950 to the date of the companymencement of the ordinance 3rd february 1961 .
the assessee is a public limited companypany engaged in the business of the manufacture and sale of sugar.
if the cess is number paid by the specified date then by virtue of s.3 3 the arrear of cess will carry interest at the rate of six per cent per annum from the specified date to the date of payment.
the judgment of the companyrt was delivered by pathak j. this appeal by certificate granted by the delhi high companyrt raises the question whether interest paid on arrears of cess under s. 3 3 of the u.p.
the ordinance was replaced by the u.p.
