TMI Blog2000 (12) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... 263 of the Income tax Act, 1961?" In the assessment case of the year 1979-80 of the two assessee-companies herein, weighted deduction under section 35B was allowed in relation to three items, but it was disallowed on the item "export freight". Aggrieved by the order of the Assessing Officer, the assessee went in appeal under section 251 of the Act before the Commissioner (Appeals). The Commissioner (Appeals) however, confirmed the order of the Income-tax Officer disallowing the assessee's claim of weighted deduction under section 35B in relation to item No.1, i.e., export freight. The Commissioner of Income-tax, however, initiated revisional proceedings under section 263 of the Act as, according to him, weighted deduction under section 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of Shri Arbuda Mills Ltd. [1998] 231 ITR 50 reads as under: "Explanation.-For the removal of doubts, it is hereby declared that, for the purposes of this sub-section.-. . . (c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject-matter of any appeal filed on or before or after June 1, 1988, the powers of the Commissioner under this sub-section shall extend and shall be deemed always to have extended to such matters as had not been considered and decided in such appeal." Learned counsel appearing for the assessee made an effort to distinguish the decision of the Supreme Court by contending that here the question was the claim to weighted deduction under section 35B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... slature has, however, by incorporating Explanation (c) to section 263 of the Act conferred powers on the revisional authority which are co-extensive with the powers of the appellate authority. It is only with a view to empower the revisional authority to exercise the powers of the appellate authority in respect of such matters which have escaped the attention of the appellate authority that Explanation (c) to section 263 has been added to protect the interests of the Revenue. The Supreme Court decision in the case of Shri Arbuda Mills Ltd. [1998] 231 ITR 50 squarely covers the question referred to us and it is, therefore, answered in favour of the Revenue and against the assessee. The references are accordingly disposed of with no order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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