- (1.) THE Income Tax Appellate Tribunal, Allahabad 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 and in the circumstances of the case, the Tribunal was, in law, justified in upholding the decision of the A.A.C. Cancelling the re -opening of assessment under section 147(b) on the basis of the decision of Hon'ble Supreme Court of India in the case of Indian and Eastern Newspaper Society v. CIT : [1979]119ITR996(SC)
(2.) THE Reference relates to the assessment year 1975 -76. Briefly stated the facts giving rise to the present Reference are that the respondents is a registered firm and carry on the business of manufacture and sale of garments. It also exports garments to foreign countries. Originally, the assessment was made on a total income of Rs. 15,810. The total turnover of the assessee was of Rs. 15,87,736 out of which the sales within India were of Rs. 6,22,144 and the exports were for Rs. 9,65,593. Thus, the export turnover was approximately 60.82 per cent of the total turnover. The respondent had claimed weighted deduction of Rs. 54,574 under section 35B of the Act on account of Export Market Development Allowance. The respondent submitted details of the expenditure incurred on export and claimed weighted deduction amounting to Rs. 54,574 which was allowed by the assessing officer. Subsequently on the basis of audit objection/report to the effect that the deduction under section 35B of the Act had been excessively allowed, the proceedings under section 147(b) of the Act were initiated and on re -assessment weighted deduction under section 35B of the Act was allowed only in respect of the expenditure of Rs. 48,881 which was incurred on foreign travel expenses and telephone calls made to foreign countries. In appeal the Appellate Assistant Commissioner had set aside the reassessment order which order has been upheld by the Tribunal.
(3.) WE have heard Sri A.N. Mahajan, learned Standing counsel appearing for the revenue. Nobody appears for the respondents.;