COMMISSIONER OF INCOME TAX Vs. EXPORT HOUSE

JUDGEMENT

(1.) AT the instance of the Revenue, the Income-tax Appellate Tribunal, Amritsar Bench, Amritsar (for short "the Tribunal"), has referred the following questions of law, for the opinion of this court :

(2.) THE assessee is a firm which derived income from export of bamboos, imli and timber to Pakistan during the relevant assessment year 1978-79. Return for this assessment year was filed declaring a loss of Rs. 1,01,243. In the computation of income, the assessee had claimed deduction under Section 35B of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), on various heads of expenditure as under : <FRM>JUDGEMENT_603_ITR256_2002Html1.htm</FRM>

(3.) THE Commissioner of Income-tax on examination of the assessment record was of the view that the aforesaid assessment order was erroneous in so far as it was prejudicial to the interests of the Revenue on the point of allowing weighted deduction of Rs. 2,84,779. Accordingly, he issued a notice to the assessee to show cause why the assessment be not revised in respect of deduction under Section 35B, in the following terms :