S.C : Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was entitled to weighted deduction under s. 35B on expenses on sea freight of Rs. 12,65,266 and insurance charges of Rs. 1,46,109 incurred by the assessee whether in India or outside ?

ORDER

BY THE COURT :

The High Court declined to call for a reference at the instance of the Revenue of three questions. It did so inregard to the second question, with which alone we are now concerned, having regard to the statement on behalf of the Revenue made before us, on the ground that it was already covered by a judgment of that High Court in respect of the same assessee but for an earlier assessment year. The second question, with which we are concerned, reads thus :

“Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was entitled to weighted deduction under s. 35B on expenses on sea freight of Rs. 12,65,266 and insurance charges of Rs. 1,46,109 incurred by the assessee whether in India or outside ?”

2. The question plainly relates to the correct interpretation to be placed upon the provisions of s. 35B and, therefore, is a question of law, the reference, of which ought to have been called for by the High Court. Accordingly, the civil appeal is allowed. The order under appeal is set aside insofar as it relates to the second question and the question, quoted above, shall be referred by the Tribunal to the High Court for its opinion, after drawing up a statement of case. No order as to costs.

[Citation : 248 ITR 451]