TMI Blog1998 (3) TMI 111X X X X Extracts X X X X X X X X Extracts X X X X ..... on 256(1) of the Income-tax Act, 1961, arising out of the assessment year 1974-75, and made at the instance of the assessee seeking the opinion of the High Court on the following two questions of law: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was correct for the purpose of computation of the deduction at 33-1/3 per cent. of the total qualifying expenses incurre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary business expenditure, under section 28 or 37 of the Income-tax Act, 1961? In so far as the first question is concerned, the law has been laid down by the Supreme Court recently in CIT v. Stepwell Industries Ltd. [1997] 228 ITR 171 and CIT v. Hero Cycles Pvt. Ltd. [1997] 228 ITR 463. There are other decisions by the different High Courts taking the view which falls in line with the view of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ready taken place. It was merely on account of fluctuation in exchange rate that the assessee was required to pay the difference. Inland freight on export consignments : This item is clearly not covered by any of the sub-clauses of clause (b) of sub-section (1) of section 35B. So is the view taken by the High Court of Delhi in Nath Bros. Exim International Ltd. v. CIT [1997] 227 ITR 635 (Delhi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed deduction. Question No. 2 : The question stands answered by the law laid down by the Supreme Court of India in Smith Kline and French (India) Ltd. v. CIT [1996] 219 ITR 581, wherein their Lordships have taken the view that surtax levied on the profits of a company is not deductible while computing the business income of an assessee under the Income-tax Act. So is the view taken by our own Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
