High Court of Punjab and Haryana, Chandigarh
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The Commissioner of Income-tax, Patiala v. Mrs.Chander Aggarwal, Ludhiana - ITR-315-1995  RD-P&H 9732 (2 November 2006)
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
I.T.R No.315 of 1995
Date of decision: 6.11.2006
The Commissioner of Income-tax, Patiala ...Petitioner Versus
Mrs.Chander Aggarwal, Ludhiana ...Respondent
CORAM: HON'BLE MR.JUSTICE ADARSH KUMAR GOEL
HON'BLE MR.JUSTICE RAJESH BINDAL
Present: Mr.S.K.Garg Narwana, Advocate for the Revenue.
Following question of law has been referred for opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh arising out of its order dated 26.9.1991 passed in I.T.A.No.673/Chandi/1986, in respect of the assessment year 1980- 81.
"i) Whether as per peculiar facts and circumstances of the case, the Tribunal was right in law in allowing weighted deduction u/s 35B in respect of expenditure on bank charges and on interest for packing credit facility amounting to Rs.59,937?"
The assessee claimed weighted deduction on bank charges and interest for packing credit facility on the ground of the said facility was availed of for export purposes. The said claim was disallowed by the Assessing Officer but was allowed by the CIT(A) against which appeal of the Revenue was dismissed by the Tribunal.
Learned counsel for the Revenues submitted that the claim for weighted deduction could not be allowed on the expenses mentioned above as per the view taken in CIT Vs.Coromandel Agro Products Oil Ltd., (1998) 230 ITR, 335 (AP), which was followed in Commissioner of Income Tax Vs. Mahavir Plantations (P.) Ltd. (2003) 260 ITR, 233 (Kerala) and judgment of this Court in Commissioner of Income Tax Vs. Oswal Woollen Mills Ltd.
and another (2002) 256 ITR , 694 wherein following earlier ****
judgment of this Court in CIT Vs.O.K.Hosiery Mills, (1999) 236 ITR, 405, it was held that weighted deduction was not admissible on bank charges and interest on packing credit where there was no evidence on record to show that the bank had rendered any service outside India.
In view of the above, the question referred is answered in favour of the revenue and against the assessee.
(Adarsh Kumar Goel)
November 6, 2006 (Rajesh Bindal)
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