1993 (2) TMI 81

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..... r sub-clause (iii) of section 35B(1)(b) of the Income-tax Act, 1961, as it stood in the assessment year 1973-74 ? " The dispute in this reference relates to the claim of the assessee for weighted deduction under section 35B(1)(b)(iii) of the Income-tax Act, 1961, in respect of a sum of Rs. 23,137 incurred by it in India on the carriage of goods to their destination outside India and the insurance of such goods while in transit. The assessment year is 1973-74. The assessee is an individual. In the previous year relevant to the assessment year 1973-74, the assessee carried on the business of export of textiles, mainly the products of the Mafatlal group, to foreign countries. The assessee had claimed weighted deduction under the provisions o .....

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..... that . . . . (b) The expenditure referred to in clause (a) is that incurred wholly and exclusively on - . . . . (iii) distribution, supply or provision outside India of such goods, services or facilities, not being expenditure incurred in India in connection therewith or expenditure (wherever incurred ) on the carriage of such goods to their destination outside India or on the insurance of such goods while in transit. " ( underlining ours ). The underlined portions were inserted by the Finance Act, 1970, with retrospective effect from the date of insertion of the section itself. A close reading of this clause makes it clear that allowance by way of weighted deduction contemplated by clause (a) of sub-section (1) of section 35B is avail .....

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..... . Faced with such a situation, learned counsel for the assessee submitted that this section should be read in a manner beneficial to the assessee. We do not find any force in this submission. The question of adopting the construction of a fiscal statute beneficial to the assessee arises only if the interpretation of such statute is open to doubt. The theory of beneficial interpretation has no application where the language of the statute is clear and explicit. In such a case, the well-settled principle of interpretation is that the statutory provision should be construed according to the plain natural meaning of its language. When the language of a particular provision is clear and according to the plain natural meaning thereof the assess .....

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