KEWAL SILK EMPORIUM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS common order of reference referable to the assessment years 1978 -79 and 1979 -80 made at the instance of the asses -see seeks the opinion of the High Court on the following common question of law :

(2.) THE statement of facts and the question itself as framed make it clear that the sale of goods had taken place within the country though the purchasers were foreign tourists. Expenditure was incurred on such sales. Such expenditure is not entitled to weighted deduction under Section 35B of the Income -tax Act, 1961, as it stood at the relevant time. Reference may be made to two recent decisions of the Supreme Court, namely, CIT v. Hero Cycles Pvt. Ltd. : [1997]228ITR463(SC) and CIT v. Step well Industries Ltd. : [1997]228ITR171(SC) .