COMMISSIONER OF INCOME TAX Vs. GYNAMIJ INDIA LIMITED

JUDGEMENT

(1.) TWO questions arise for consideration in this reference at the instance of the Revenue. They read thus :

(2.) COUNSEL are agreed that the first question must be answered in the affirmative and in favour of the Revenue in view of the judgment of the Supreme Court in Lohia Machines Ltd. vs. Union of India (1985) 44 CTR (SC) 328 : (1985) 152 ITR 308.

(3.) THE answer to the first question being in the affirmative, the second question has to be considered. And it is agreed that the issue is concluded by the judgment of this Court in CIT vs. National Organic Chemical Industries Ltd. 1978 CTR (Bom) 449 : (1978) 115 ITR 56. Having regard to this judgment, the question is answered thus : Only those liabilities which were due and payable on the relevant date can be deducted.