HIGH COURT OF DELHI

Commissioner of Income-tax

v.

Arvind Dumra Sons

MADAN B. LOKUR AND S. MURALIDHAR, JJ.

IT REFERENCE NO. 238 OF 1992

September 25, 2007

Section 35B of the Income-tax Act, 1961 - Export Markets Development Allowance - Assessment year 1982-83 - Tribunal held that assessee was entitled to weighted deduction under section 35B on expenditure of Rs. 95,212, even though nature of assessee’s business was only to procure orders for export of goods - Whether tax liability not being substantial, question under reference had to be returned unanswered - Held, yes -

ORDER

In this reference relevant for the assessment year 1982-83, the following question has been referred for our opinion:-

Whether on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee is entitled to weighted deduction under section 35B of the Income-tax Act, 1961 on the expenditure of Rs. 95,212 even though the nature of the business of the assessee was only to procure orders for export of goods?

The tax liability in this case does not appear to be substantial.

Under the circumstances, we return the reference unanswered.