9911796707
TMI Blog1993 (2) TMI 13X X X X Extracts X X X X X X X X Extracts X X X X ..... lectrical instruments, etc. In the assessment, the assessee had claimed weighted deduction under section 35B of the Income-tax Act, 1961 (" the Act "), in respect of Rs. 36,63,463. Ultimately, the dispute was restricted to the amount of Rs. 18,32,262. Under section 256(1) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal has referred the following question for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the following expenditure incurred by the assessee qualified for relief under section 35B : Rs. (i) Guarantee charges 5,98,228 (ii) Interest 6,36,605 (iii) Commission 3,75,000 (iv) Miscellaneous expenses like telephone and trunk call charges, letter of credit charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terest amount of Rs. 6,36,605 the facts are--the assessee paid this interest to the State Bank of Bikaner and Jaipur and to the Central Bank of India in connection with the advances received from the banks for the manufacture of the goods which were ultimately exported outside India. The assessee's case before the income-tax authorities was that these banks gave the said facility of providing funds to it for the purposes of execution of the export orders and these funds were to be used for making the next consignment of goods to the foreign constituents and should not be used for any other business activities. The assessee discounted the bills sent by the foreign constituents with the banks and obtained the advances to be used for executing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal granting weighted deduction on the interest payment of Rs. 6,36,605. We have considered the submissions of the parties as well as carefully gone through the aforesaid reported decisions and we find force in the stand taken on behalf of the Revenue. We have come to this conclusion as we find from the paper book that no evidence has been brought on record to support the assessee's contention that the banks had rendered services to the assessee outside India. We find from the decision of the Madhya Pradesh High Court that the High Court was pleased to take its decision in favour of the assessee mainly on the ground of the finding of fact by the Tribunal and nothing else. In the instant case, for want of such findings, we have no hesitat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on the entire amount of Rs. 2,22,429. It appears to us that on an estimate basis, he has held that the assessee would not be entitled to weighted deduction on Rs. 22,429. Surely, this is not the way of disposing of an issue while framing the assessment. It is this action of the Income-tax Officer that the appellate authorities did not approve and held that the assessee would be entitled to weighted deduction on the balance amount of Rs. 22,429 also. We do not find any infirmity in the action of the Tribunal in granting weighted deduction on Rs. 22,429. In the result, we hold that the assessee would be entitled to weighted deduction under section 35B of the Act in respect of : Rs. (i) Guarantee charges 5,98,228 (ii) Commission 3,75 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
