TMI Blog2002 (2) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee claimed weighted deduction under section 35B of the Income-tax Act, 1961. Following the decision of the Special Bench in J. Nam Chandi and Co. in I.T.R. Nos. 3255 and 3330/Bom/76-77, the Tribunal accepted the assessee's claim. Still further, the assessee had also claimed deduction on account of payment of wages/salary in lieu of leave to various employees. This claim was also allowed by the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on', 'Electricity', 'Postage' and 'Telegrams', 'Stationary and printing', 'Office expenses', etc.? (c) Whether, on the facts and circumstances of the case, in the absence of there being anything on record connecting the aforesaid items of expenditure wholly or in part with the specific activities mentioned in section 35B(1)(b), the Appellate Tribunal was right in law in allowing weighted deducti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is further directed that the assessee shall be given an opportunity to adduce evidence and to substantiate its claim for deduction under various heads of section 35B. The matter shall be decided after consideration of the relevant material. So far as question (d) is concerned, it has been submitted by Mr. Sanjay Bansal, learned counsel for the assessee, that regular payments were made to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details with regard to the claim. It was examined in the light of the provisions of section 79 of the Factories Act, 1948. The Tribunal had observed that "every worker who had worked for a period of 240 days or more in a factory during the calendar year, is allowed during the subsequent calendar year 'leave with wages' for a specific number of days." The period within which the leave had to be av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view taken by the authorities is in conformity with the decision of their Lordships of the Supreme Court in the case of Bharat Earth Movers [2000] 245 ITR 428. Resultantly, the deduction as claimed by the assessee is rightly allowed. The question is answered in favour of the assessee and against the Revenue. In view of the above, so far as questions (b) and (c) are concerned, the matter is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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