R.K.AGRAWAL,J. - (1.) THE Income Tax Appellate Tribunal, Delhi has referred the following question of law under section 256(1) of the Income Tax Act, 1961, hereinafter referred to as the Act, for opinion to this Court. 'Whether on the facts the Tribunal has been right in law in holding that rule 6AA of the Income Tax Rules, 1962 was operative for the assessment year 1981 -82 and thereby reversing the CIT (A) order withdrawing weighted deduction in respect of Rs. 46,354 and Rs. 53,553 granted in the assessment under section 35B(1)(b)(ix) of the Income Tax Act, 1961?'
(2.) BRIEFLY stated the facts giving rise to the present reference are as follows: - The respondent, a registered firm, carried on business of manufacture and export of shoe uppers. The assessment year under reference is 1981 -82 for which the accounting period was the financial year ending 31 -3 -198 1. The respondent agitated the assessment framed on 24 -3 -1983 on various counts. However, though some relief was given, the CIT(A) withdrew weighted deduction in respect of two items of Rs. 46,354 and Rs. 53,553 stated to be incurred in respect of export inspection charges and quality control and inspection of goods respectively, on the ground that these were not covered under any of the sub -clauses of section 35B after brushing aside the respondent's agitation. The CIT(A) for his order took support from rule 6AA, which was inserted by Income Tax (8th Amendment) Rules, 1981 with effect from 1 -8 -1981.
(3.) IN further appeal filed by the respondent, the Tribunal reversed the order of the CIT(A) in respect of weighted deduction under section 35B of the Act by holding that sub -clause (ix) of clause (b) of sub -section (1) of section 35B of the Act was in existence all along and as soon as the activities referred to in sub -clause (ix) was prescribed the same was to be read as part of sub -clause (ix) and as the said sub -clause was operative on 1 -4 -1981 the respondent would be eligible for benefit under sub -clause (ix). The finding of the CIT(A), therefore, that rule 6AA would not be operative for assessment year 1981 -82 is not correct.;