High Court Of Madras
CIT vs. Bharat Overseas Bank Ltd.
Asst. Year 1982-83
R. Jayasimha Babu & K. Gnanaprakasam, JJ.
Tax Case No. 150 of 1988
16th November, 2000
Mrs. Chitra Venkataraman, for the Revenue : R. Meenakshisundaram, for the Assessee
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 assesseeâs 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]