COMMISSIONER OF INCOME TAX Vs. DELHI AUTOMOBILES

JUDGEMENT

(1.) THIS reference is at the instance of the Revenue for the asst. yr. 1975 -76 and the following two questions have been referred which are as under :

(2.) SO far as the first question is concerned, on examination of the facts, the Tribunal has recorded that the amount was not paid by the assessee as penalty for late payment of sales -tax but it was by way of interest. And if that be so, the answer is required to be given in favour of the assessee and against the Revenue. So far as the second question is concerned, the Tribunal, relying upon the decision reported as J.K. Chemicals Ltd. vs. CIT (1966) 62 ITR 34 (Bom), decided the issue in favour of the assessee. The said decision of the Bombay High Court was examined by the Supreme Court in the case of CIT vs. Sugauli Sugar Works (P) Ltd. (1999) 152 CTR (SC) 46 : (1999) 236 ITR 518 (SC). The Supreme Court has pointed out as under :

(3.) IN view of the said decision of the Supreme Court, the second question is also required to be answered in favour of the assessee and against the Revenue.