MADAN B. LOKUR, J. ( 1 ) THE question of law that has been referred for our opinion under section 256 (1) of the Income Tax Act, 1961 reads as follows:- "whether the Tribunal was correct in law and on facts in confirming the view of the Commissioner of Income-tax (A) that the molasses reserve fund did not constitute the income of the Assessee and that the Assessee was entitled to get a deduction of Rs. 2,00,581/ -. " ( 2 ) THE view taken by the Madras High Court in Commissioner of Income Tax v. New Horizon Sugar Mills Pvt. Ltd. , [2000] 244 ITR 738, is that for the purpose of construction of Molasses Storage Tank an amount set apart by the Assessee and placed in the Molasses Reserve Fund as required by the Molasses Control Order has to be excluded from its total income. ( 3 ) AGAINST the decision of the Madras High Court an appeal was preferred by the Revenue and that was dismissed by the Supreme Court in commissioner of Income Tax v. New Horizons Sugar Mills P. Ltd. , [2004] 269 ITR 397. We find no distinction in law in the case decided by the Madras High Court and the present case. ( 4 ) UNDER the circumstances, we answer the question referred to us in the affirmative, in favour of the Assessee and against the Revenue. .