9911796707
TMI Blog1999 (7) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... risdiction of this court, and has branches outside India including Ceylon and Singapore. It claimed the benefit of section 35B of the Income-tax Act, 1961, by way of weighted deduction for the expenditure incurred by it on its branches at Ceylon and Singapore for the assessment year 1978-79. The Income-tax Officer held that the assessee was not entitled to weighted deduction on the expenditure of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d money from the bank and paid interest to the bank on the loans obtained by them. The Tribunal was of the view that the interest receipts of the assessee were not relevant for determining the expenditure incurred by the assessee by way of interest payments to its depositors. It is not in dispute that section 35B(1)(b) of the Act had been property invoked by the assessee. The only dispute is as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iture should be regarded as being eligible for weighted deduction. Section 35B of the Act refers to "any expenditure". Expenditure referred to an outgo. If the monies had been expended and such monies would qualify for the weighted deduction, provided the expenditure was incurred for any one of the purposes referred to in section 35B of the Act. In the absence of anything in the section which woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by that branch by the aid of the funds for securing which expenditure had been incurred. We, therefore, answer the question referred to us, viz., "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that the assessee is entitled for weighted deduction under section 35B in respect of the gross interest payments made in foreign branches ?" in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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