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Judgment
On an application filed u/s 256(2) of the Income Tax Act, 1961, the Income Tax Appellate Tribunal has referred the following question for our opinion :
"Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that the weighted deduction u/s 35B of Income Tax Act, 1961 should be allowed on Technical Directors salary amounting to Rs. 1,00,142?"
The assessee derives income from the company which is a dealer in readymade garments for the relevant assessment year 1977-78.
We have considered the arguments advanced by the learned counsel for the parties and the arguments made in this case is similar to the arguments made in the case of D.B. I.T. Ref. No. 84/1981.
As the questions involved in the instant case is similar to the questions involved in the aforementioned case, the present reference is decided in terms of the view taken in the order passed in DB IT Ref. No. 84/1991 that the view of the Tribunal is erroneous.
In the result, we answer the question in negative, in favour of the revenue and against the assessee.