Rajes Kumar, J. - (1.) The Income Tax Appellate Tribunal has referred the following questions of law under Section 256 (2) of the Income Tax Act, 1961 (hereinafter referred to as "Act") for the assessment year 1079-80 for opinion to this Court. "Whether on the facts and in the circumstances of the case, Tribunal was justified in law in holding that the assessee Firm fulfilled all the relevant conditions prescribed in Section 35B (1-A) as amended by theu Finance Act, 1978 and was entitled to weighted deduction under Section 35-A? Whether the Tribunal was justified in dismissing the department's second appeal on the issue of weighed deduction under Section 35-A when the Tribunal itself has allowed department's reference application under Section 256(1) in the case of United Trading Corporation, Moradabad for the assessment year 1979-80 (C. A. no. 1493/Del/of 1983 dated 18.6.1984)?"
(2.) The brief facts of the case are as follows:The assessee/opposite party hereinafter referred to as 'assessee') was an exporter of Brassware. The assessment year involved is 1979-80. The assessee claimed weighted deduction under Section 35B (1A) as inserted by the Finance Act, 1978 w.e.f. 1.4.1978. It claimed to be a small scale exporter/However, the I.T.O. disallowed the claim. He held that the assessee's sphere of work was to purchase items from the local "Karigare"/"Karkhanedars'' and that it was not the original manufacturer and basically a process done of the items which were exported by it.
(3.) In appeal, the learned Appellate Assistant Commissioner confirmed the order of the Income Tax Officer on the same basis.;