COMMISSIONER OF INCOME TAX Vs. MAHENDRA MILLS LTD.

JUDGEMENT

(1.) THIS reference, at the instance of the Revenue, is made to this Court for its opinion, raising following question of law for the asst. yr. 1984 -85 : "Whether the Tribunal is right in law and on facts in holding that deduction in respect of purchase price payable by the assessee in respect of supply of gas received from ONGC should be allowed in the respective years when such supply of gas was received on the basis of price which had been finally determined by the Supreme Court -

(2.) WE have heard learned standing counsel Mrs. Mauna M. Bhatt for the Revenue.

(3.) THE facts leading to this reference are that the respondent -assessee claimed deduction of Rs. 1,28,54,737 being the demand raised by ONGC by increasing the price of goods (Gas) supplied by it. The AO rejected the claim of the assessee and the CIT(A) confirmed the said order of disallowance.