RAJARAJESWARI WEAVING MILLS Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THESE two writ appeals raise a common question and may be disposed of together by a common judgment. W.A. No. 113of 1977 relates to the assessment year 1970-71 and W.A. No. 114of 1977 relates to the assessment year 1971-72. Both the appeals arise out of orders passed by a learned judge dismissing the writ petitions in limine. It would be convenient to deal first with the facts in W.A. No. 113 of 1977. W.A. No. 113 of 1977

(2.) THE assessee claimed deduction of certain amounts expended by him for the purchase of stock-in-trade, viz., yarn. Deduction was claimed on the basis of, the general provisions of the Income-tax Act read in the light of Section 40A(3) and Rule 6DD(j) of the Act and the Rules. THE section of the Income-tax Act with particular reference to which the claim for deduction has got to be based is Section 28 of the Act. THE deduction was disallowed on the ground that the requirements of Section 40A(3) and Rule 6DD(j) have not been satisfied. Section 40A(3) and Rule 6DD(j) may conveniently be extracted.

(3.) OUR attention was further drawn to the decisions in J. K. Synthetics Ltd. v. Central Board of Direct Taxes [1972] 83 ITR 335 (SC) and Sirpur Paper Mills Ltd. v. Commissioner of Wealth-tax [1970] 77 ITR 6 (SC) (the latter of these, rendered under the provisions of Section 13 of the Wealth-tax Act corresponding to Section 119 of the Income-tax Act).