9911796707
TMI Blog1993 (7) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... er, on the facts and in the circumstances of the case, the Tribunal without considering the case on merits and without proper, relevant and independent findings is right in allowing the claim solely relying on a decision of the Madhya Pradesh High Court ?" The respondent, an assessee to income-tax, is a limited company engaged in the business Of export of coir products. We are concerned with the assessment year 1980-81. The accounting period ended on December 31, 1979. The assessee was keeping its accounts on mercantile basis. The return submitted by the assessee for the year 1980-81 disclosed a profit of Rs. 7,42,870. The assessee had claimed weighted deduction under section 35B of the Income-tax Act, 1961, in respect of interest on pack ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e concerned bank to the effect that the assessee had maintained with it an export packing credit amount and advances were made available only when the parties submitted a copy of the export contract entered into with the foreign party and other evidence, that the expenditure was incurred in connection with export. In this case, there is no finding by the Appellate Tribunal whether the expenditure was incurred in connection with the execution of a contract for the supply of goods outside India. What is more, without a proper finding, the Appellate Tribunal was in error in directing weighted deduction to be allowed in respect of interest on packing credit. Counsel for the respondent-assessee sought to sustain the order of the Appellate Tribun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly of goods outside India. We hold so. We, therefore, answer question No. 2 in the negative and hold that the Appellate Tribunal was wrong in allowing the claim solely by referring to the decision of the Madhya Pradesh High Court. We answer question No. 1 in the negative and hold that the Appellate Tribunal was not justified in allowing weighted deduction in respect of interest on packing credit. Before doing so, the Tribunal should enter a specific finding on an evaluation of the evidence that, the expenditure was incurred in connection with the execution of a contract for the supply of goods outside India. We answer question No. 1 in the negative, against the assessee and in favour of the Revenue. The references are answered as above. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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