K.C. Agrawal, Actg. C.J. - (1.) THIS petition under Article 226 of the Constitution has been filed by Bremco Corporation for quashing of the order dated June 13, 1979, passed by the Commissioner of Income-tax rejecting the application of the petitioner filed under Section 264 of the Income-tax Act.
(2.) THE petitioner is carrying on a business in manufacturing harness and saddlery goods and exports the same. In the assessment year 1976-77, the petitioner disclosed an income of Rs. 2,06,450. It claimed Rs. 41,689.16 as export expenses under Section 35B of the Income-tax Act. On October 3, 1977, the Income-tax Officer, Circle-II(2), Kanpur, made an assessment under Section 143(3) on a total income of Rs. 2,16,060. The Income-tax Officer held that the share allocation will be as under : JUDGEMENT_281_ITR181_1990Html1.htm
(3.) THE order of the Income-tax Officer became final. In 1979, the petitioner moved an application under Section 264 of the Income-tax Act claiming rebate of Rs. 5,75,153.68 under Section 35B on the ground that under legal advice, it was entitled to weighted deduction on export markets development expenditure amounting to Rs. 5,75,154. The Income-tax Officer had wrongly allowed deduction only of Rs. 33,807. The petitioner pleaded that the assessment order was since prejudicial to its interest, the same was liable to be revised under Section 264 (1) and the entire claim was to be allowed to it. The application was rejected by the Commissioner of Income-tax by the impugned judgment and order dated June 13, 1979, on the ground that as the claim made by the petitioner under Section 35B had been allowed by the Income-tax Officer on an agreed basis, a fresh claim could not be entertained. His view was that there was no justification for the grievance of the petitioner for being allowed more as weighted deduction.;