MOTILAL PADAMPAT UDYOG LTD Vs. CIT

JUDGEMENT

(1.) THE Income Tax Appellate Tribunal, Allahabad, has referred the following question of law under Section 256(1) of the Income Tax Act, 1961, (hereinafter referred to as 'the Act'), for the opinion of this Court : Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal is correct in law in holding that the assessee is not entitled to deduction for liability for market fee on the sale of sugar and molasses ?

(2.) THE reference relates to the assessment years 1976 -77 and 1977 -78.

(3.) DURING the assessment year 1976 -77, the assessee had claimed deduction for Rs. 6,72,294 being the liability for payment of market fee.