SARASPUR MILLS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE following two questions arise for our consideration in this reference :

(2.) THE assessee made a claim for deduction of interest paid for delayed payment of tax which came to be disallowed by the CIT(A) and confirmed by the Tribunal. The assessee also made a claim for deduction against expenses incurred for supply of tea, coffee, etc., by way of entertainment expenses. Both these questions are now covered by the judgment in the case of Saurashtra Cement & Chemical Industries Ltd. vs. CIT (1994) 122 CTR (Guj) 329 : (1995) 213 ITR 523 (Guj) : TC 17PS.20 and in the case of CIT vs. Patel Bros. and Co. Ltd. and Ors. (1995) 126 CTR (SC) 132 : (1995) 215 ITR 165 (SC) : TC 17PS.43 respectively. So far as the claim for deduction of interest paid on delayed payment of tax is concerned, this Court in Saurashtra Cement's case (supra) has observed as under :

(3.) IN view of this we answer the first question referred to us in the affirmative, i.e., in favour of the Revenue.