R.C.Lahoti - (1.) Statement of case has been drawn up and the following question (referable to assessment year 1978-79) referred for the opinion of the High Court by the Income-tax Appellate Tribunal under Section 256(1) of the Income-tax Act, 1961, at the instance of the assessee : "Whether on facts and in the circumstances of the case the Tribunal was right in law in disallowing weighted deduction u/Sec. 35B of the Income-tax Act on the following expenses : (a) Insurance charges on export sales - 71,903.00 (b) Freight from factory to Port - 6,90,260.00 (c) Ocean freight - 7,17,883.00 "
(2.) The assessee is a Company manufacturing AAC and ACSR conductors. During the assessment year 1978-79 the assessee had export sales of Rs. 2.98crores and local sales of Rs. 2.15 crores. The assessee claimed weighted deduction under Section 35B of the Act at Rs. 16,52,219.00 as per revised return as against Rs. 3,77,886.00 claimed in the original return. The ITO allowed weighted deduction of Rs. 1,84,044.00 . The assessee carried the matter to CIT (Appeals) and further to ITAT claiming weighted deduction under Section 35B on the following items : Issuance charges on export sales - Rs71,903.00 Freight from Factory to Port - Rs.6,90,260.00 Ocean Freight - Rs.7,17,883.00 .
(3.) The Tribunal rejected the assessee's claim. Hence the present reference.;