I.T.R. No. 10 of 1995 [ 1]
IN THE HIGH COURT OF PUNJAB AND HARYANA
AT CHANDIGARH
Income Tax Reference No. 10 of 1995
Date of decision: August 25, 2008
The Commissioner of Income Tax,
Patiala. .. Applicant.
v.
M/s Punjab Small Industries and Export
Corporation Limited, Chandigarh. .. Respondent.
CORAM: HON'BLE MR. JUSTICE HEMANT GUPTA
HON'BLE MR. JUSTICE RAJESH BINDAL
Present: Ms. Urvashi Dhugga, Advocate for the applicant.
Mr. Akshay Bhan, Advocate for the respondent.
..
Rajesh Bindal J.
The following questions of law have been referred for opinion
of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench,
Chandigarh (for short, `the Tribunal’) arising out of order dated 9.3.1994
passed in I.T.A. No. 239 of 1989, for the assessment year 1984-85:
“1. Whether on the facts and in the circumstances of the
case, the ITAT was right in law in upholding the order of
the CIT(A) to allow weighted deduction u/s 35B on the
expenditure incurred on D.A. and incidental charges on
the employees of the assessee outside India ?
2. Whether on the facts and in the circumstances of the
case, the ITAT was right in law in upholding the order of
the CIT(A) deleting addition of Rs. 44,46,374/- on
account of interest receivable by the assessee on accrual
basis ?
3. Whether on the facts and in the circumstances of the
case, the ITAT was right in law in upholding the order of
the CIT(A) in deleting addition of Rs. 13,11,079/- on
account of advance money received by the assessee
against the allotment of plots ?
I.T.R. No. 10 of 1995 [ 2]
4. Whether on the facts and in the circumstances of the
case, the ITAT was right in allowing change of method
of accounting for a specific item of income in the same
source of income ?”
The primary issue raised in the present petition regarding
change of method of accounting has been considered by this Court in the
judgment of even date in I.T.R. No. 72 of 1989 –The Commissioner of
Income Tax, Patiala v. M/s Punjab State Small Industries Corporation Ltd.,
Chandigarh now The Punjab Small Industries & Export Corporation Ltd.,
Chandigarh, for the assessment year 1981-82, has been answered in favour
of the assessee and against the Revenue.
For the reasons stated therein, which shall be read as part of the
present order as well, the questions referred to above, are answered against
the Revenue and in favour of the assessee.
The reference is disposed of accordingly.
(Rajesh Bindal)
Judge
(Hemant Gupta)
Judge
August 25, 2008
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