BANK OF BARODA Vs. H C SHRIVATSAVA

JUDGEMENT

(1.) HAVING heard the parties at length, this petition was allowed for the reasons to be recorded subsequently. We, accordingly, give our reasons for allowing the petition. This petition is directed against the revisional order, dt. 21st Feb., 1986, passed under S. 264 of the IT Act, 1961 ('the Act'), holding that the assessee, the petitioner bank was not entitled to get deduction under S. 35B of the Act in the asst. year 1975 76, in respect of the expenses incurred outside India, and also on its International Division in India.

(2.) THE facts leading to the present petition may be stated briefly : The petitioner is one of the leading nationalised banks of the country, engaged in the business of banking and carries on banking operations from its branches situated all over India as well as abroad. At the material time it had 32 foreign branches situate outside India, spread over in several countries of the world. The foreign branches at the relevant time carried on various banking activities such as accepting deposits, advancing money and other banking services, etc.

(3.) THE petitioner bank was, subsequently, advised that it would be entitled to a deduction under s. 35B in respect of expenditure outside India for the maintenance of its branches as well as in its International Division in India. It, therefore, preferred a revision application before the respondent No. 1 and requested him to direct the AO to grant necessary deductions under S. 35B.