COMMISSIONER OF INCOME TAX Vs. DCM LIMITED

JUDGEMENT

(1.) THE captioned reference has been made at the behest of the revenue. THE reference pertains to assessment year 1981-

(2.) THE brief facts pertaining to the aforementioned question are that the assessee had been collecting excise duty on the goods sold by it out of the State of Utter Pradesh (U.P.). Till the assessment year 1975 the assessee had been paying the excise duty collected from its customers to the concerned authorities. It appears that a challenge was laid by the assessee to the levy of the excise duty, in and around 1975-76, by institution of a writ petition before the Allahabad High Court. THE Allahabad High Court, as an interim measure, had granted a stay; as a consequence of which the assessee continued to credit the amount to a separate account. It is not disputed that the Allahabad High Court finally, on 13.03.1980 decided the issue against the assessee.

(3.) THE learned counsel for the assessee says that this question is covered by the decision of the Delhi High Court in the case of Delhi Cloth and General Mills Co. Ltd. vs CIT (1986) 158 ITR 64 (Delhi). This position has not been disputed by the learned counsel for the revenue. THE question of law is thus answered in the negative and consequently in favour of the assessee.