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TMI Blog1998 (3) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... ghted deduction under section 35B on the sum of Rs. 54,170 being the service charges paid to the State Trading Corporation ?" The assessee is a company carrying on business in manufacture and sale of cement. The assessee during the course of the assessment proceedings for the assessment year 1976-77, claimed weighted deduction under section 35B in respect of the expenses paid to the State Trading Corporation of India in respect of the transhipments of a sum of Rs. 54,170. The Income-tax Officer rejected the claim of the assessee on the ground that the claim of the assessee would fall under clause (iii) of section 35B(1)(b) of the Act and the assessee was not entitled to claim the weighted deduction. The assessee preferred an appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned counsel for the assessee, on the other hand, submitted that the Appellate Tribunal has followed its earlier order in the case of Farida Prime Tannery and it has given a categorical finding with reference to the activities of the State Trading Corporation and the finding arrived at by the Appellate Tribunal in that case would also be applicable in the assessee's case as well and the assessee was entitled to weighted deduction under section 35B of the Act. We have carefully considered the submissions of learned counsel on either side. It is well settled by the decisions of the apex court in the case of CIT v. Stepwell Industries Ltd. [1997] 228 ITR 171 as well as in the case of CIT v. Hero Cycles Pvt. Ltd. [1997] 228 ITR 463 that it is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is eligible to claim weighted deduction under section 35B(1) of the Act. The Supreme Court in CIT v. Stepwell Industries Ltd. [1997] 228 ITR 171 in C. A. No. 8790 of 1995 has remitted the matter to the Appellate Tribunal as the Tribunal has not examined the case properly. Following the said judgment of the apex court, we are of the opinion that the matter should go back to the Appellate Tribunal to consider the question afresh. The apex court in CIT v. Hero Cycles Pvt. Ltd. [1997] 228 ITR 463in C. A. No. 3 120 of 1995, also remitted the matter to the Appellate Tribunal to consider whether the expenditure incurred by way of commission to the State Trading Corporation was eligible for weighted deduction. The Supreme Court also held that the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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