COMMISSIONER OF INCOME TAX Vs. NATIONAL PALAYACOT COMPANY

JUDGEMENT

(1.) THIS is a petition filed by the CIT, Tamil Nadu V, Madras, under s. 256(2) of the IT Act, 1961, to direct the Tribunal to state a case and refer the following question of law for the asst. yr. 1982-83.

(2.) THE Tribunal followed an earlier decision of this Court in CIT vs. Kasturi Palayacat Co. 1979 (120) ITR 827, 1980 (15) CTR 378, 1980 (15) CTR(Mad) 378 (Mad), and held that the assessee would be entitled to deduction under s. 35B(1)(b) on the expenditure incurred for maintenance outside India of a branch for the promotion of the sale outside India of the goods of the assessee. THE Revenue filed an application under s. 256(1) of the IT Act on the ground that the earlier decision of this Court has not become final. THE Tribunal, however, rejected the application on the ground that this Court in the case of Best & Crompton Engg. Ltd. in TCP No. 95 of 1987 by order dt. 15th February, 1988 has rejected the tax case petition. THE present tax case petition has been filed on the ground that the Supreme Court has granted special leave to appeal against the decision of this Court in CIT vs. Kasturi Palayacat Co. (supra) in SLP (Civil) Nos. 10326 to 10329 of 1980 by order dt. 22nd July, 1983 and it is reported in 1983 143 ITR(St) 39. Learned senior counsel for the Department has submitted that the appeal is still pending before the Supreme Court