2009 (3) TMI 46 - HC - Income Tax

Whether Tribunal was justified in rejecting the claim of assessee-company for weighted deduction u/s 35C on Expenses incurred on provision of Distillation services, Expenses on transportation services provided to farmers, Expenses incurred on Mentha Administration Services, Expenses on distillation services including depreciation on assets used for distillation services and on assets used for Mentha Research Centre questions are answered in the affirmative and against the assessee

Summary

The High Court of Bombay, consisting of Judges F. I. Rebello and R. S. Mohite, addressed a question of law under Section 156(1) of the Income-tax Act. The issue at hand was whether the Appellate Tribunal was correct in rejecting the claim of the assessee-company for weighted deduction under section 35C. The expenses in question included those incurred on provision of Distillation services, transportation services for farmers, Mentha Research Centre, Mentha Research Administrative Centre, distillation services, and depreciation on assets used for distillation services and Mentha Research Centre. The Court ruled that question 1(a), 1(c), 1(d), and 1(e) were answered in the affirmative against the assessee, citing judgments from Income Tax Reference No.315 of 1988 and Income Tax Reference No.3 of 1998. For question 1(b), the Court referred to a previous judgment from 18.3.2009 in Income Tax Reference No.3 of 1998, answering the question in the affirmative against the assessee. The reference was disposed of with no orders as to costs.