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Issues involved: The judgment deals with the failure of the assessee to claim export markets development allowance under section 35B of the Income Tax Act, 1961, and the subsequent refusal of rectification by the assessing authorities.
Summary: Claim for Export Markets Development Allowance: The petitioner, an assessee engaged in export trade, failed to claim export markets development allowance under section 35B for the assessment years 1969-70 and 1970-71. Despite raising the issue during appeal proceedings, the Tribunal did not allow the claim as it was not raised earlier. The Commissioner upheld the decision, stating that the absence of a claim during assessment proceedings justified the refusal to rectify the assessment order. Interpretation of Section 35B: Section 35B of the Income Tax Act allows for a deduction for export markets development allowance under specific conditions. The language of the section indicates that a deduction is only allowable when claimed by the assessee. The court emphasized that the statutory provisions require a specific claim for the allowance to be made, as evidenced by the prescribed column in the return form. Precedents and Legal Interpretation: The judgment cited previous cases where the failure to claim specific allowances resulted in the denial of rectification under section 154. It was highlighted that rectification is not warranted when the claim was not initially made by the assessee. The court differentiated cases where rectification was not sought, emphasizing the duty of the assessing officer to rectify mistakes brought to their notice. Dismissal of Writ Petition: Ultimately, the court dismissed the writ petition, stating that the failure to claim the export markets development allowance led to the rejection of rectification. The petitioner's request for a certificate under specific articles of the Constitution was also denied, as no substantial question of law requiring Supreme Court intervention was identified. This judgment underscores the importance of timely and specific claims for deductions under the Income Tax Act, highlighting that rectification is not applicable in cases where claims were not initially made by the assessee.
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