Ajit K.Sengupta, J. - (1.) In this reference under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1975-76, the following questions of law have been referred to this court : "1. Whether, on the facts and in the circumstances of the case, the assessee is entitled to weighted deduction under Section 35B of the Income-tax Act, 1961, in its assessment for the accounting period relevant to the assessment year 1975-76 in respect of the amounts of Rs. 25,69,739 incurred by the assessee on freight and Rs. 1,662 incurred by it on insurance ?" 2. Whether, on the facts and in the circumstances of the case, the assessee is entitled to weighted deduction of the entire amount of Rs. 1,79,760 being the proportionate head office expenses and not Rs. 71,210 in its assessment for the accounting period relevant to the assessment year 1975-76 ? 3. Whether, on the facts and in the circumstances of the case, the assessee is entitled to the deduction of surtax liability amounting to Rs. 33,32,024 in computing its income for the accounting period relevant to the assessment year 1975-76 ?"
(2.) The first question is now concluded by the decision of this court in the case of Bharat General and Textile Industries Ltd. v. CIT [1985] 153 ITR 747.
(3.) Following the said decision, we answer the first question in the affirmative (sic) and in favour of the Revenue.;