Commissioner of Income Tax Vs. Road Master Industries of India (P) Ltd. - Court Judgment

Excerpt:
- code of civil procedure, 1908.[c.a. no. 5/1908]. section 100: [arijit pasayat & lokeshwar singh panta, jj] second appeal formulation of substantial question of law is a must. order of high court disposing of second appeal without formulating substantial question of law was set aside......question, with which we are concerned, reads thus (page 69) :'whether, on the facts and in the circumstances of the case, the income tax appellate tribunal was right in law in holding that the assessee was entitled to weighted deduction under section 35b on expenses on sea freight of rs. 12,65,266 and insurance charges of rs. 1,46,109 incurred by the assessee whether in india or outside?'the question plainly relates to the correct interpretation to be placed upon the provisions of section 35b and, therefore, is a question of law, the reference of which ought to have been called for by the high court.accordingly, the civil appeal is allowed. the order under appeal is set aside in so far as it relates to the second question and the question, quoted above, shall be referred by the.....

Judgment:
ORDER

The High Court (see CIT v. Road master Industries of India (P) Ltd. (P&H;), declined to call for a reference at the instance of the revenue of three questions. It did so in regard to the second question, with which alone we are now concerned, having regard to the statement on behalf of the revenue made before us, on the ground that it was already covered by a judgment of that High Court in respect of the same assessee (CIT v. Road master Industries of India (P) Ltd. , but for an earlier assessment year. The second question, with which we are concerned, reads thus (page 69) :

'Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the assessee was entitled to weighted deduction under section 35B on expenses on sea freight of Rs. 12,65,266 and insurance charges of Rs. 1,46,109 incurred by the assessee whether in India or outside?'

The question plainly relates to the correct interpretation to be placed upon the provisions of section 35B and, therefore, is a question of law, the reference of which ought to have been called for by the High Court.

Accordingly, the civil appeal is allowed. The order under appeal is set aside in so far as it relates to the second question and the question, quoted above, shall be referred by the Tribunal to the High Court for its opinion after drawing up a statement of case.

No order as to costs.