Madras H.C : Whether the Tribunal was right in holding that the interest paid by the assessee’s foreign branch on its deposits and borrowals would qualify for weighted deduction under s. 35B(1)(b)(iv)

Counsel Appeared

Mrs. Chitra Venkataraman, for the Revenue : R. Meenakshisundaram, for the Assessee

JUDGMENT

R. JAYASIMHA BABU, J. :

The question referred to us is as to whether the Tribunal was right in holding that the interest paid by the assessee’s foreign branch on its deposits and borrowals would qualify for weighted deduction under s.

35B(1)(b)(iv) as expenditure incurred on the maintenance of the foreign branch.

2. An identical question in respect of the same assessee for a different assessment year was considered by this Court in the case of CIT vs. Bharat Overseas Bank Ltd. (2000) 162 CTR (Mad) 158 : (2000) 243 ITR 320 (Mad). It was held by this Court that the assessee was not entitled to weighted deduction claimed. 13. For the reasons stated in that judgment and following the same, we hold that the Tribunal was in error in allowing the weighted deduction for the asst. yr. 1982-83. The question referred to us is answered in favour of the Revenue and against the assessee.

[Citation : 247 ITR 685]