RICHARDSON HINDUSTAN LTD Vs. COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) The questions of law referred to this Court under Section 256(1) of the Income-tax Act, 1961, are as under:

(2.) In our view, question No. 1(a) is covered by a judgment passed in Income-tax Reference No. 315 of 1998 wherein in respect of the same assessee and on a similar factual background, we have held that expenses on distillation services provided to the cultivator would not be admissible for deduction under Section 35C of the Income-tax Act. In the circumstances, for the same reasons as in the aforesaid judgment, question No. 1(a) is answered in the affirmative and against the assessee.

(3.) As regards question No. 1(b), we have answered the same in a judgment and order dated March 18, 2009, passed in Income-tax Reference No. 3 of 1998. The said question has been answered in the affirmative and against the assessee and hence for the reasons given in our judgment passed in Income-tax Reference No. 3 of 1998, question No. 1(b) is answered in the affirmative and against the assessee.