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TMI Blog1998 (3) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... R. C. LAHOTI J.---This is a reference under section 256(1) of the Income-tax Act, 1961, arising out of the assessment year 1974-75, and made at the instance of the assessee seeking the opinion of the High Court on the following two questions of law: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct for the purpose of computation of the deduction at 33-1/3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be allowed as a deduction as necessary business expenditure, under section 28 or 37 of the Income-tax Act, 1961? In so far as the first question is concerned, the law has been laid down by the Supreme Court recently in CIT v. Stepwell Industries Ltd. [1997] 228 ITR 171 and CIT v. Hero Cycles Pvt. Ltd. [1997] 228 ITR 463. There are other decisions by the different High Courts taking the view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be not allowable. The export had already taken place. It was merely on account of fluctuation in exchange rate that the assessee was required to pay the difference. Inland freight on export consignments : This item is clearly not covered by any of the sub-clauses of clause (b) of sub-section (1) of section 35B. So is the view taken by the High Court of Delhi in Nath Bros. Exim International Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re as not entitled to weighted deduction. Question No. 2 : The question stands answered by the law laid down by the Supreme Court of India in Smith Kline and French (India) Ltd. v. CIT [1996] 219 ITR 581, wherein their Lordships have taken the view that surtax levied on the profits of a company is not deductible while computing the business income of an assessee under the Income-tax Act. So is th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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