Madras H.C : The assessee is entitled for weighted deduction under s. 35C in respect of the expenditure incurred by way of salary, bonus, ex gratia production incentive, etc. to the employees who are involved in the purchase of sugarcane, is, therefore, answered in favour of the assessee and against the Revenue.

High Court Of Madras

CIT vs. Sakthi Sugar Ltd.

Section 35C

R. Jayasimha Babu & C. Nagappan, JJ.

Tax Case No. 114 of 1991

1st August, 2001

Counsel Appeared

Mrs. Chitra Venkataraman, for the Revenue : P.P.S. Janardhana Raja, for the Assessee

JUDGMENT

R. JAYASIMHA BABU, J. :

The finding is a finding of fact. The Tribunal has observed that the expenditure was incurred on the staff of the company engaged in rendering service to the agriculturists. It is also to be noted that the Revenue had not controverted that position.

2. The question referred to us as to whether the Tribunal was right in law in holding that the assessee is entitled for weighted deduction under s. 35C in respect of the expenditure incurred by way of salary, bonus, ex gratia production incentive, etc. to the employees who are involved in the purchase of sugarcane, is, therefore, answered in favour of the assessee and against the Revenue.

[Citation : 254 ITR 605]