TMI Blog1985 (7) TMI 19X X X X Extracts X X X X X X X X Extracts X X X X ..... amplifiers and T. V. antennas at its factory situated at Nasik and distribution of newsprint paper, electrodes and export of coffee, tea and pepper. For the assessment years 1975-76 and 1976-77 relevant to the accounting years ending on March 31, 1975 and March 31, 1976 respectively, the assessee filed its returns before the Income-tax Officer, Company Circle-I, Bangalore, inter alia, claiming sums of Rs. 8,881 and Rs. 9,342 respectively as deductible expenditure under section 35B of the Income-tax Act of 1961 ("the Act"), for the aforesaid assessment years. The assessee also claimed deduction of premiums paid on an insurance policy taken out by it in the name of one Sri S. K. Sippy employed as its manager under section 40A(5)(a) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ur of the Revenue and against the assessee. Sri G. Sarangan, learned counsel appearing for the assessee, contends that on the finding of fact recorded by the Tribunal and the plain language of section 35B(1)(b) of the Act, the deduction claimed had been rightly allowed by the Tribunal and the Appellate Assistant Commissioner and, therefore, the question has to be answered in favour of the assessee. On the two payments, that are the subject of a common question referred to us, the Tribunal has found thus : "The department is aggrieved by this order. A copy of the order of the Tribunal has been placed before us. The Bombay Bench of the Tribunal has held that the premium is paid to the Export Credit Guarantee Corporation for getting info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee and against the Revenue. We now pass on to examine question No. 2 in ITRC No. 220 of 1979 which reads thus : "2. Whether, on the facts and in the circumstances of the case, the premium paid by M/s. J. B. Advani and Co., (Mysore) (P) Ltd., on a policy on the life of the manager in the two years under reference were perquisite within the meaning of the term 'perquisite' as used in section 40A(5)(a) of the Income-tax Act, 1961 Sri Srinivasan contends for answering this question also in favour of the Revenue and in that he sought to distinguish the Division Bench ruling of this court in ITRC No. 169 of 1979 decided on 2nd August, 1984-CIT v. Amco Batteries Ltd. [1984] 150 ITR 48. Sri Sarangan contends that the principles enunc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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