KEC INTERNATIONAL LTD Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) By this reference the following two questions of law have been referred by the I.T.A.T. for the opinion of this court under Section 256(1) of the Income Tax Act, 1961.

(2.) A third question is also referred to us at the instance of the department which is as follows:

(3.) As regards the first question, in so far as it relates to insurance, freight and export inspection agency charges, the same has already been answered in the affirmative and in favour of the revenue by various judgments of this court. By a judgment of this court in the case of M. H. Daryani Vs. C.I.T. reported in 202 ITR 731 this court has held that expenditure on insurance and freight are not eligible for weighted deduction under section 35B. By the judgment in the case of Dr. Beck and Co. (India) Ltd. Vs. CIT reported in 206 ITR 311 this court has held that export inspection charges are not deductible under section-35B. Following these judgments, we answer this question in the affirmative and against the assessee.