Commissioner of Income Tax vs Triveni Sheet Glass Works Ltd.

B.P. Jeenvan Reddy, C.J.—This is an application u/s 256(2) of the Income Tax Act, 1961, made by the Revenue. In its application u/s 256(1), the Revenue had asked the Tribunal to refer the following three questions for the opinion of this court :

"1. Whether, on the facts and circumstances of the case, there was material before the Tribunal to hold that weighted deduction u/s 35B is admissible on total expenditure of Rs. 6,42,036 when the assessee itself has claimed such deduction on total expenditure of Rs. 6,33,699 only ?

Whether, on the facts and circumstances of the case, the Tribunal was justified in confirming weighted deduction u/s 35B on rent paid by the assessee in India ?

Whether the Income Tax Appellate Tribunal was justified in allowing deduction u/s 35B equal to the proportion of sales to export sales ?"

The Tribunal referred questions Nos. 1 and 2 but declined to refer question No. 3. This application is, therefore, confined to question No. 3. We have perused the order of the Tribunal. In our opinion, the question sought to be raised in question No. 3 is implicit in question No. 1. In fact, the Appellate Assistant Commissioner had allowed deduction of an amount more than that claimed by the assessee himself applying the pro-rata basis, which is the subject-matter of complaint in question No. 3. In such a situation, we do not think that it is necessary to refer question No. 3 separately.

The Income Tax application is accordingly disposed of. No costs.