1987 (1) TMI 38 - HC - Income Tax

Summary

The High Court of Delhi directed the Tribunal to refer two questions of law regarding the weighted deduction under section 35B of the Income-tax Act, 1961. The first question was about the basis for limiting the deduction to 80%, and the second was about disallowing local journey expenses and limiting foreign traveling expenses to 80%. The Court found that the percentage of disallowance was arbitrary and not based on material, and that certain aspects of interpretation of the provisions of section 35B needed clarification. The Tribunal was instructed to refer the questions for the court's decision.