DARYANI M H Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under section 256(1) of the Income -tax Act, 1961, the Income -tax Appellate Tribunal, at the instance of the assessee, has referred the following question of law to this court for opinion :

(2.) THE dispute in this reference relates to the claim of the assessee for weighted deduction under section 35B(1)(b)(iii) of the Income -tax Act, 1961, in respect of a sum of Rs. 23,137 incurred by it in India on the carriage of goods to their destination outside India and the insurance of such goods while in transit. The assessment year is 1973 -74. The assessee is an individual. In the previous, year relevant to the assessment year 1973 -74, the assessee carried on the business of export of textiles, mainly the products of the Mafatlal group, to foreign countries. The assessee had claimed weighted deduction under the provisions of section 35B of the Income -tax Act, 1961, among others, on the expenditure of Rs. 23,137 incurred in India as freight and forwarding charges on the carriage of its goods to their destination outside India and on the insurance of such goods while in transit. The claim was disallowed by the Income -tax Officer. The disallowance made by the Income -tax Officer was upheld by the Appellate Assistant Commissioner and the Tribunal. Hence this reference.

(3.) THE underlined portions were inserted by the Finance Act, 1970, with retrospective effect from the date of insertion of the section itself.