ORDER Heard learned counsel for the parties.
2. This is an Income Tax Reference raising the question:
2. This is an Income Tax Reference raising the question:
"Whether, on the facts and in the circumstances of the cases, the Tribunal was right in disallowing the deduction of an aggregate sum of Rs. 2,02,640 payable by the assessee as interest under section 3(3) of the U.P. Sugarcane (Purchase Tax) Act, 1961 in the computation of its business profits for the assessment year 1975-76 ?"
3. It has been categorically held by a Full Bench's decision of this court in a case of Triveni Engg. Works Ltd. v. CIT 1983 UPTC 1261 (All), that interest paid on sugarcane purchase tax arrears under the provisions of U.P. Sugarcane (Purchase Tax) Act, 1961 as an allowable deduction under the Income Tax Act, 1961, and in deleting thereby the disallowance of interest. The same view has been taken on sole question No. 1 in the case of Dhampur Sugar Mills Ltd. v. CIT(I991)188 ITR 787 (All). Thus, in view of the judgment we answer reference in favour of the assessee and against the revenue.
3. It has been categorically held by a Full Bench's decision of this court in a case of Triveni Engg. Works Ltd. v. CIT 1983 UPTC 1261 (All), that interest paid on sugarcane purchase tax arrears under the provisions of U.P. Sugarcane (Purchase Tax) Act, 1961 as an allowable deduction under the Income Tax Act, 1961, and in deleting thereby the disallowance of interest. The same view has been taken on sole question No. 1 in the case of Dhampur Sugar Mills Ltd. v. CIT(I991)188 ITR 787 (All). Thus, in view of the judgment we answer reference in favour of the assessee and against the revenue.