HAMOSONS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, the Appellate Tribunal has stated a case and referred the following common question of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for our opinion.

(2.) THE assessee claimed, during the course of assessment proceedings for the assessment years 1976-77, 1977-78 and 1978-79, weighted deduction under the provisions of section 35B of the Act in respect of the following expenditure : ------------------------------------------------------------------------ <FRM>JUDGEMENT_752_ITR239_1999Html1.htm</FRM> ------------------------------------------------------------------------

(3.) IN so far as the first three items are concerned, viz., railway freight, air freight and insurance, Mr. Janarthana Raja, learned counsel for the assessee fairly brought to our notice an earlier decision of this court in the case of the same assessee in T.C. No. 190 of 1983 and this court in the said T.C. No. 190 of 1983 by judgment dated February 9, 1995, held that the assessee was not entitled to claim weighted deduction in respect of the said three items on the score that the expenditure was incurred in INdia. Following the said judgment, we hold that in view of the specific statutory bar imposed by section 35B(1)(b)(iii) of the Act, the assessee is not eligible to claim weighted deduction in respect of railway freight, air freight and insurance.