Weighted deduction for foreign branch interest expenditure upheld under section 35B following earlier assessee precedent.

Gross interest expenditure incurred in foreign branches was held to qualify for weighted deduction under section 35B of the Income-tax Act, 1961. The Madras High Court applied its earlier decision in the assessee-bank's own case, where the same claim had been accepted, and followed that reasoning to allow the deduction. The claim was therefore upheld in favour of the assessee and against the Revenue.

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Issues: Whether the gross interest payment incurred in the foreign branches was entitled to deduction under section 35B of the Income-tax Act, 1961.

Analysis: The assessee-bank claimed weighted deduction for expenditure incurred in its foreign branches. The question had already been considered in the assessee's own case, where the same claim under section 35B was accepted. Applying that earlier decision, the Court held that the expenditure in question qualified for the deduction claimed.

Conclusion: The issue was decided in favour of the assessee and against the Revenue.

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