SAKTHI SUGARS LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) PURSUANT to the directions of this Court in T. C. P. No. 766 of 1997 dated 25. 6. 1998, the Income-tax Appellate Tribunal has stated a case and referred the following question of law for our consideration:-

(2.) THE assessment year involved is 1983-84. The assessee is a public limited company and its main business is the manufacture of sugar. The assessee claimed, in its assessment proceedings, weighted deduction on certain expenses under section 35-C of the Income-tax Act, 1961 (hereinafter referred to as 'the Act'), but the assessing officer disallowed the following expenses:-

(3.) THE submission of Mr. P. P. S. Janarthana Raja, learned counsel for the assessee is that the entire expenditure incurred by the assessee on the maintenance of motor vehicles in cane department would qualify for deduction. He also submitted that the entire travelling expenses incurred by the assessee in cane department would also qualify for deduction, and the assessing officer was not correct in disallowing 60% of travelling expenses. Learned counsel submitted that the expenditure incurred by the assessee for the transport of fertiliser would also qualify for weighted deduction under section 35-C of the Act.