JAWAHAR LAL GUPTA, J. - (1.) THE Revenue seeks the opinion of this Court on the following question : "Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in holding that weighted deduction under S. 35B of the IT Act, 1961 on expenditure of Rs. 66,742 incurred by way of testing fees paid to different laboratories in India, is admissible?"
(2.) THE learned counsel for the parties are agreed that in view of the decisions of their Lordships of the Supreme Court in CIT vs. Stepwell Industries Ltd. & Ors. (1997) 142 CTR (SC) 345 : (1997) 228 ITR 171 (SC) : TC S15.1492 and CIT vs. Hero Cycles (P) Ltd. and Ors. (1997) 142 CTR (SC) 212 : (1997) 228 ITR 463 (SC) : TC S14.1494, the issue regarding admissibility of the deductions claimed by the assessee has to be decided by the Tribunal after giving an opportunity to the assessee to establish its case. They further agreed that in view of the aforesaid decisions, the order of the Tribunal passed on 12th April, 1985 in respect of the asst. yr. 1978-79 be set aside in so far as the admissibility of deductions under S. 35B of the IT Act, 1961, is involved. The statement made by the counsel is in conformity with the observations of their Lordships of the Supreme Court in the two cases noticed above. Resultantly, the order of the Tribunal, in so far as deductions under S. 35B of the 1961 Act are concerned, is set aside. The question is answered in favour of the Revenue and the case is remanded to the Tribunal for a fresh decision in accordance with the observations of their Lordships of the Supreme Court in the aforesaid cases. No costs.;