Packing credit interest excluded from weighted deduction under section 35B, following binding precedent on the scope of the provision.

Interest paid on packing credit was treated as outside the scope of weighted deduction under section 35B of the Income-tax Act because the earlier binding view had already held that such interest did not qualify. The assessee did not dispute that legal position, and the claim for deduction on that count was therefore rejected in favour of the Revenue.

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Issues: Whether interest paid on packing credit qualified for weighted deduction under section 35B of the Income-tax Act, 1961.

Analysis: The claim for weighted deduction in respect of packing credit interest was examined in the light of the earlier binding decision holding that such interest does not fall within the scope of section 35B. The assessee did not dispute that legal position.

Conclusion: Weighted deduction was not allowable on interest paid on packing credit, and the finding of entitlement on that count was answered against the assessee and in favour of the Revenue.

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