AMBICA MILLS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference, the Tribunal ("the Tribunal" for short) has referred to us, for our opinion, the following questions under S. 256(1) of the IT Act, 1961 ("the Act" for short) :

(2.) THE assessee company carries on the business of manufacturing textiles, steel tubes, machineries, cylinders and chemicals. During the course of assessment proceedings for the asst. yr. 1975 76, the assessee had made, inter alia, claims for weighted deduction under the provisions of S. 35B of the Act. The assessee claimed weighted deduction on export commission, foreign travelling expenses, export inspection fees and export freight paid in India.

(3.) THE assessee carried the matter in appeal before the CIT (A) ("the CIT" for short). However, the CIT confirmed the disallowance of weighted deduction claimed under S. 35B of the Act by dismissing the appeal. Being aggrieved by the said decision of the CIT, the assessee challenged its legality and validity before the Tribunal. The Tribunal also confirmed the decision of the ITO and the CIT, following the decision of a Special Bench of the Tribunal in J. Hemchand & Co. (ITA No. 3255 and 3330/Bom/76 77, dt. 17th June, 1978). In short, the assessee failed in the proceedings before the Department and also before the Tribunal.