COMMISSIONER OF INCOME TAX Vs. RUKMANI MILLS LIMITED

JUDGEMENT

(1.) THE following question has been referred by the Tribunal under S. 256(1) of the IT Act, 1961 :

(2.) THE question, in so far as it refers to "for stay of tax", is not happily worded. A sum of Rs. 14,003 was paid as guarantee commission to the Bank of Madura. The break -up of the amount for the several items are as follows : . Rs.

(3.) AS far as the first two amounts are concerned, the matter has already been decided in Sivakami Mills Ltd. vs. CIT (1979) 120 ITR 211. As far as the third amount is concerned, it would stand on an a fortiori footing, because sales tax is a revenue liability and the guarantee commission paid for discharging a revenue liability would clearly be revenue. The result is that the question referred is answered in the affirmative and in favour of the assessee. There will be no order as to costs.