K. Shivashankar Bhat J.--The question referred to us under the provisions of the Income Tax Act, 1961 ("the Act" for short), reads thus :

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in upholding the orders of the Commissioner of Income Tax (Appeals) deleting the addition of Rs. 1,08,644 made in the assessment for the assessment year 1980-81, being the amount transferred to the molasses storage fund from the sale proceeds of the molasses ?"

2. There is no dispute that the selling price of molasses was fixed by the Government of India as per the Molasses Control Order and, while determining the price to be charged by the assessee, the Government had stipulated that one-third of the price charged should be transferred to a fund called "Molasses Storage Fund". This amount could be utilised only according to the instructions issued by the Government from time to time. The amount thus transferred has to be kept separately from other business funds in a separate bank account and it was not possible to withdraw the same without the prior approval of the Excise Department. By virtue of this statutory mandate, the assessee had set