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Petitioner: CRESCENT DYES AND CHEMICALS LTD. VS Respondent: COMMISSIONER OF INCOME-TAX, WEST BENGAL-III,CALCUTTA
1986 P T D 485
1986 P T D 485
[Calcutta High Court (India)]
Before Sabyasachi Mukharji and Suhas Chandra Sen, JJ
CRESCENT DYES AND CHEMICALS LTD.
Versus
COMMISSIONER OF INCOME-TAX, WEST BENGAL‑III,CALCUTTA
Income‑tax Reference No. 390 of 1979, decided on 25th January, 1983.
Income‑tax‑‑
‑‑‑Reference‑‑Deduction‑‑Assesses having overdraft account in a bank depositing every month more than what it was paying by way of advance tax‑‑Interest cannot be disallowed.
Reckit and Colman of Inida, Ltd. v. Commissioner of Income‑tax (1982) 135 I T R 698 (Cal.) and Woolcombers of India v. Commissioner of Income‑tax (Central) (Cal.) (1982) 134 I T R 219 (Cal) ref.
Dr. D. Pal with Miss Manisha Seal for Assessee.
B.K. Bagchi for Revenue.
JUDGMENT
SUHAS CHANDRA SEN, J.‑‑We have considered the facts of this case as stated by the Tribunal.. In view of the real controversy between the parties the question that has been referred to is reframed as under:‑‑
"Whether on the facts and in the circumstances of the case, the Tribunal was right in upholding the disallowance of interest of Rs.1,42,191 for the assessment year 1971 72."
2. It appears from the facts of this case that the assessee had an overdraft account with National and Grindlays Bank, Ltd. and from Schedule 'A' to the assessment order it appears that the assessee was depositing every month more than what it was paying by way of tax. In view of the judgments of this Court in the cases of Woolcombers of India v. Commissioner of Income‑tax (Central) (Cal.) (1982) 134 I T R 219 and (1981) Tax L R (NOC) 188 and Reckitt and Colman of India, Ltd. v. Commissioner of Income‑tax (1982) 135 I T R 698; 1983 Tax LR (NOC) 69, this question is answered in the negative and in favour of the assesses.
3: In the facts and circumstances of the case, there will be no order as to costs.
SABYASACHI MUKHARJI, J.‑‑I agree.
M. B. A. Reference answered in the negative.