TMI Blog2000 (2) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessment years 1967-68 to 1970-71, arise from the judgment and order of the Division Bench of the High Court of Judicature at Bombay in Income-tax Reference No. 242 of 1976 dated December 12, 1988 (see [1991] 188 ITR 122). Following that judgment, the Division Bench disposed of Income-tax Reference No. 10 of 1987 which pertains to the assessment year 1974-75 on July 30, 1998, which is under challenge in Civil Appeal No. 3788 of 1999. The common substantial question of law, which arises in these appeals, is question No. 2 noted below. Briefly stated, the facts giving rise to these appeals are as follows : The respondent assessee is an Indian resident company. It is carrying on the business of exporting tea. In the aforementioned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the parties that this question is covered against the Revenue by the judgment of this court in CIT v. Continental Construction Ltd. [1998] 230 ITR 485 affirming the judgment in continental Construction Ltd. v. CIT [1990] 185 ITR 178 (Delhi). Adverting to the second question, the High Court answered it in the affirmative, i.e., in favour of the assessee and against the Revenue. It will be apt to refer to section 35B of the Act, which is the subject-matter of debate in all the five appeals. "35B. Export markets development allowance.--- (1)(a) Where an asses- see, being a domestic company or a person (other than a company) who is resident in India, has incurred after the 29th day of February, 1968, but before the 1st day of March, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of clause (b). On these requirements being satisfied the assessee-company becomes entitled to the weighted deduction under section 35B. It is not necessary that the export should be directly ex-India (from India). The Tribunal's reading of the section that the export should be ex-India is not supported by the language of the provision or any authority. The High Court has, therefore, rightly concluded that to avail of the benefit of weighted deduction the provision does not require that the export should be ex-India. It must be observed in fairness to Mr. M. L. Verma, learned senior counsel appearing for the Revenue, that he does not seriously dispute this proposition. Once this position is accepted, the order under challenge has to be s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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