(1.) THE petitioner is a public limited company incorporated under the provisions of the Companies Act, 1956. The petitioner is carrying on the business of manufacturing oil engines, water pumps, etc. The petitioner also carries on the business of exporting oil -engines manufactured by it.
(2.) THE petitioner is assessed to income -tax under the I.T. Act, 1961 (hereinafter referred to as 'the Act'). The question arising for determination in the instant case relates to assessment year 1975 -76, the relevant previous year being Samvat year 2030.
(3.) ON June 30, 1975, the petitioner furnished the return of income for assessment year 1975 -76 showing total income of Rs. 4,18,234. The total income was computed after making a deduction in respect of the export markets development allowance permissible under s. 35B on an expenditure of Rs. 12,76,522 incurred during the relevant previous year. On July 19, 1975, the petitioner furnished a revised return of income showing total income of Rs. 2,29,149, as according to the petitioner, there were some mistakes in the return previously filed. The same deduction under s. 35B was made while computing total income as aforesaid in the revised return. On August 28, 1975, the petitioner paid a sum of Rs. 9,776 as and by way of tax on self -assessment under s. 140A. By an order made on May 9, 1978, under s. 143(3), the ITO assessed the total income of the petitioner at Rs. 4,92,950. In the course of the said order, the ITO rejected the claim in respect of the export markets development allowance on the expenditure of Rs. 12,76,522 incurred during the relevant previous year, except to the extent of Rs. 20,248, which sum reflected the expenditure incurred on travel outside India. The ITO also directed that interest shall be payable by the petitioner under s. 215 upon the amount by which the advance tax paid fell short of the assessed tax (see Ex.'A'). Be it stated that the interest payable accordingly worked out to Rs. 59,978.