COMMISSIONER OF INCOME-TAX Vs. PUNJAB BONE MILLS

JUDGEMENT

(1.) THE following two questions of law have been referred in Income-tax Reference No. 37 of 1984 relating to the assessment year 1978-79 by the Income-tax Appellate Tribunal (for short, "the Tribunal") at the instance of the Department under Section 256 (1) of the Income-tax Act, 1961 (for short, "the Act") :

(2.) IN the other two references (Income-tax References No. 36 of 1987 and No. 2 of 1991) relating to the same assessee for the subsequent two different years (1981-82 and 1982-83), one common question has been referred in each reference and that common question is identical to question No. 2 referred in the assessment year 1978-79,

(3.) THE assessee had shown the total exports at Rs. 51,42,000 against the total turnover of Rs. 81,55,000. The export was thus about 63 per cent, of the total turnover. The Commissioner of Income-tax, after adopting the percentage of export at 63 per cent. , further reduced it by 50 per cent, on the ground that, in the absence of details, expenditure incurred for export promotion and development would qualify for weighted deduction and not the expenditure for making of the exports. He thus allowed weighted deduction on Rs. 27,304 against the expenditure totalling Rs. 86,680 on the aforesaid items.