1998 (10) TMI 60 - HC - Income Tax

Summary

The High Court of Punjab and Haryana considered a case involving weighted deduction under section 35B of the Income-tax Act, 1961 for commission paid to the State Trading Corporation by the assessee-firm, Swadeshi Karyalay. The Income-tax Appellate Tribunal initially allowed the deduction on the whole amount of the commission, but a similar case examined by the Supreme Court concluded that such deduction was not admissible. Consequently, the High Court directed the Tribunal to reexamine the matter to determine if the claim falls under any sub-clauses of clause (b) of section 35B(1) of the Act.