1995 (3) TMI 79 - HC - Income Tax

Accounting Year, Business Expenditure, Capital Or Revenue Expenditure, Development Allowance, Finding Of Fact, Liability For Excise Duty, Question Of Law, Weighted Deduction

Summary

Issues:
1. Allowability of additional liability on excise duty for current year production.
2. Entitlement to weighted deduction under section 35B on specific expenditures.
3. Allowance of commission paid to a specific entity.
4. Classification of expenditure on building as revenue expenditure.
5. Allowability of additional excise duty provision for current year production.

Analysis:
1. The court considered questions 1 and 5 together as they were similar and interdependent. The Tribunal's decision on these questions was found to be in line with the law established by the Supreme Court in a previous case. The court concluded that these questions were purely factual and did not warrant a reference to the court for opinion.

2. Question 3 regarding the allowance of commission paid to a specific entity was deemed to be a factual issue based on the Tribunal's assessment of evidence. The court found no legal question arising from this issue and declined to call for a reference on this matter.

3. Regarding question 2, the court determined that the aspect related to weighted deduction under section 35B on specific expenditures raised a legal question. Therefore, the court directed the Tribunal to refer this question to the court for opinion while dismissing the other parts of the question as not involving legal issues.

4. The court analyzed question 4 concerning the classification of expenditure on a building as revenue expenditure. After considering the arguments presented by both parties, the court concluded that this question raised a legal issue. Consequently, the court directed the Tribunal to refer this question to the court for opinion.

5. In the final decision, the court directed the Tribunal to refer the reframed question 2 and question 4 to the court for its opinion. The court also stated that there would be no order as to costs in this matter.