2009 (3) TMI 49 - 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

Issues:
1. Rejection of claim for weighted deduction under section 35C on various expenses related to agricultural techniques, transportation services, scientific farming, distillation services, and Mentha Research Centre.
2. Entitlement to deduction under section 35-C on depreciation on jeeps used for dissemination of information.

Analysis:

1. The judgment addresses various questions of law referred to the Court under Section 156(1) of the Income-tax Act. The first issue involves the rejection of the claim for weighted deduction under section 35C by the Appellate Tribunal. The judgment discusses specific expenses incurred by the assessee, including those related to demonstration of modern agricultural techniques, transportation services for farmers, scientific farming, distillation services, and assets used for the Mentha Research Centre. The Court refers to previous judgments involving the same assessee to provide a decision on each sub-issue. The Court answers affirmatively against the assessee for expenses related to distillation services, transportation services, scientific farming, and assets used for the Mentha Research Centre.

2. The second issue pertains to the entitlement to deduction under section 35-C on depreciation on jeeps used for dissemination of information. The Court examines the factual background and finds that the jeeps were indeed used for providing services to farmers, which aligns with the provisions of Section 35-C (b) (ii) of the Income Tax Act. Consequently, the Court answers this question in the affirmative and in favor of the assessee.

In conclusion, the judgment disposes of the Income Tax Reference with no orders as to costs based on the detailed analysis and decisions provided for each issue raised. The Court's interpretation of the provisions under the Income Tax Act and the application of relevant case law to the specific circumstances of the case result in a comprehensive resolution of the legal questions posed before the Court.