High Court rules against ITAT, denies bank's 35B relief, cites Finance Act changes.

The High Court of Madras held that the Income-tax Appellate Tribunal erred in instructing the Assessing Officer to recalculate the D.I.T. relief without deducting the section 35B deduction for a bank with a Bangkok branch. The court determined that the bank was not eligible for relief under section 35B for the 1984-85 assessment year, citing amendments introduced by the Finance Act, 1983.

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The High Court of Madras ruled that the Income-tax Appellate Tribunal was wrong in directing the Assessing Officer to recompute the D.I.T. relief without reducing the deduction under section 35B for a bank with a branch in Bangkok. The court found that the bank was not entitled to claim any relief under section 35B for the assessment year 1984-85 due to changes in the law brought about by the Finance Act, 1983.

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