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The Commissioner of Income Tax, Central v. FC Sondhi & Co. (India) Pvt. Ltd.Jala - ITR-17A-1993  RD-P&H 10031 (7 November 2006)
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
ITR No. 17A of 1993
Date of decision:14.11.2006
The Commissioner of Income Tax, Central Ludhiana ....Petitioner
M/s. FC Sondhi & Co. (India) Pvt. Ltd.Jalandhar ....Respondent
CORAM: HON'BLE MR. JUSTICE ADARSH KUMAR GOEL
HON'BLE MR. JUSTICE RAJESH BINDAL
Present: Mr. SK Garg Narwana, Advocate, for the revenue.
Following question of law has been referred for the opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, 'the Tribunal) arising out of its order dated 11.9.1990 in ITA No.5/ASR/87, for the assessment year 1979-80:- " Whether on the facts and in the circumstances of the case and on the proper interpretation of Section 35-B, the Appellate Tribunal was right in law in holding that the assessee was entitled to weighted deduction on a part of the expenses incurred in respect of establishment printing and stationery, vehicle repairs, Director' Meeting Fees, export promotion expenses, travelling, foreign telex and telephone and postage expenses etc. in India?" We have heard learned counsel for the revenue.
Even though, the issue was decided in favour of the assessee by this Court in CIT v. F.C.Sondhi and Co.(India) Pvt., (1998) 230 ITR 279 but a different view was thereafter taken by the Hon'ble Supreme Court in CIT v. Hero Cycles Private Limited and others, (1997) 228 ITR 463.
Following the said view, this Court in ITR No.52 of 1990, Commissioner of Income Tax,(Central) Ludhiana v. M/s OK Hosiery Mills, Ludhiana), decided on 15.9.2006, held that expenses which were not wholly and ITR No.17A of 1993 2
exclusively necessary for the purpose of export, were not eligible for weighted deduction under section 35-B of the Income Tax Act, 1961 (for short, 'the Act').
The matter will, thus, have to be gone into by the Tribunal in the light of the judgment of the Hon'ble Supreme Court in Hero Cycles's case (supra) and remanded to the Tribunal.
Accordingly, the matter is remanded to the Tribunal for a fresh decision in accordance with law.
Reference is disposed of accordingly.
(Adarsh Kumar Goel)
November 14, 2006 (Rajesh Bindal)
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