2002 (7) TMI 23 - HC - Income Tax

High Court rules in favor of assessee in tax case, interpreting Income-tax Act

Kaira Dist. Co-Op. Milk Producers Union Ltd. Versus Commissioner of Income-Tax.

The High Court of Gujarat ruled in favor of the assessee in a tax case for the assessment year 1976-77, addressing issues related to the interpretation of ... '1. Whether the Appellate Tribunal was right in its interpretation and application of section 35C of the Income-tax Act, 1961? - 2. Whether, Tribunal was right in holding that the entire expenditure of Rs. 39,24,979 was not eligible for weighted deduction under section 35C? - 3. Whether, Tribunal was right in law in holding that only ten per cent. of the expenses incurred on dissemination of information or demonstration of modern techniques and the methods of agricultural, animal husbandry or dairy or poultry farming or advice on such techniques or methods is eligible for weighted deduction under section 35C of the Act? we answer questions Nos. 1 to 3 in the negative, i.e., in favour of the assessee and against the Revenue. - 4. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the cost price of milk powder and soya flour received by the union from the UNICEF free of charge is not deductible in the computation of the total income?' - We answer question No. 4 in the negative, i.e., in favour of the assessee and against the Revenue. The High Court of Gujarat delivered a judgment on a tax case for the assessment year 1976-77. The court answered questions regarding the interpretation and application of section 35C of the Income-tax Act, eligibility for weighted deduction, and deductibility of certain expenses in favor of the assessee. The court referred to previous decisions to support its rulings. The reference was disposed of with no order as to costs.