IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME INCOME INCOME TAX REFERENCE NO.298 OF 1988 TAX REFERENCE NO.298 OF 1988 TAX REFERENCE NO.298 OF 1988 M/s Synthetics & Chemicals ... ... Applicant Ltd., Bombay Vs. The Commissioner of Income ... ... Respondents Tax, Bombay City IV, Bombay Mr. S.J. Mehta for Applicant. Mr. A.S. Rao with Mr. P.S. Sahadevan for Respondents. CORAM CORAM CORAM : DR.S. RADHAKRISHNAN & : DR.S. RADHAKRISHNAN & : DR.S. RADHAKRISHNAN & J.P. J.P. J.P. DEVADHAR, JJ. DEVADHAR, JJ. DEVADHAR, JJ. DATE DATE DATE : 9TH APRIL, 2008 : 9TH APRIL, 2008 : 9TH APRIL, 2008 P.C. P.C. P.C. :- :- :- 1) Heard learned counsel for the Applicant and the learned counsel for the Respondents. 2) The Income-Tax Appellate Tribunal under Section 256(1) of The Income Tax Act, 1961 has referred for the opinion, the following question : "Whether on the facts and in the circumstances of the case, the rejection of the Applicant- Company’s claim for deduction of Rs.4,00,000/- being guarantee commission paid to M/s Kilachand Devchand & Co. Pvt. Ltd. was justified particularly in view of the fact that the same was not considered and allowed by the Tribunal in the previous assessment years 1972-1973 and 1973-1974 to which it relates, despite the fact that the said claim was made by the applicant company in 2 the appeals to Tribunal for the respective assessment years?" 3) Learned Counsel appearing for the Revenue as well as the assessee state that the aforesaid question is squarely covered by the Judgment of Division Bench of this Court in Commissioner of Income Tax vs. Phalton Sugar Works Ltd. reported in 162 ITR 622 (BOM) in favour of the assessee and against the Revenue. 4) In view of the above, the question is answered in the negative and the reference stands disposed of. ( DR. S.RADHAKRISHNAN, J.) DR. S.RADHAKRISHNAN, J.) DR. S.RADHAKRISHNAN, J.) ( J.P. DEVADHAR, J.) J.P. DEVADHAR, J.) J.P. DEVADHAR, J.)