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TMI Blog1985 (9) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... iled by ill, he forwarded the draft order together with the objection to the Inspecting Assistant Commissioner and on receipt of direction from him under section 144B(4) of the Income-tax Act, 1961, issued an assessment order on September 24, 1979, disallowing many deductions claimed by the assessee such as deduction on surtax, depreciation on vanaspati plant, annual depreciation in respect of new hosiery machinery, extra shift allowance on weigh bridge, weighted deduction under section 35B, depreciation on car and claim in respect of leave with wages. The assessing authority also made heavy additions on account of the alleged inflation in purchase of oil in vanaspati unit at Ludhiana, some Costs of rice bran and deflation of sales. A parti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re being anything on the record connecting the aforesaid items of expenditure wholly or in part with the specific activities mentioned in section 35B(1) (b) of the Act, the Appellate Tribunal was right in law in allowing weighted deduction on the aforesaid items of expenditure simply because they were connected with assessee's export business ? (d) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in allowing assessee's claim for leave with wages, ignoring the fact that this was not an ascertained liability, but a contingent liability and hence not allowable under the law ? Question of law in ITA No. 185/CHANDI/80. (e) Whether, on the facts and in the circumstances of the case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eed that questions (a) and (e) have become infructuous in view of the rectification order of the Tribunal, dated June 23, 1985. Also there is no dispute that the questions (b) and (c) in ITA No. 168 of 1980 and entered as (f) and (g) in ITA No. 185 of 1980 are questions of law arising from the order of the Tribunal. As regards question (d), the learned counsel for the assessee contended that the same has been decided by the Tribunal in view of the decision of the conference of the Commissioners noticed by the Delhi High Court in CIT v. Jay Engineering Works [1984] 145 ITR 297 (sic). It was also urged that the accounting system employed by the assessee being mercantile, the claim for leave with wages was rightly allowed. Both the contenti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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