Income-tax reference questions on deductions and weighted deduction were directed to be referred to the Tribunal

Questions on deduction under sections 80HH and 80-I were treated as covered by an earlier decision, and the investment allowance issue under section 32A was held to follow consequentially from that reasoning. On the weighted deduction claim under section 35B(1)(iv), the Court noted a divergence of judicial opinion and that the issue was pending before the Supreme Court, so it was also considered fit for reference. The Tribunal was directed under section 256(2) of the Income-tax Act, 1961 to refer all three questions.

---

---

Issues: Whether the questions relating to deduction under sections 80HH and 80-I, investment allowance under section 32A, and weighted deduction under section 35B(1)(iv) of the Income-tax Act, 1961 were required to be referred to the Tribunal under section 256(2) of that Act.

Analysis: The questions on deduction under sections 80HH and 80-I were treated as covered by an earlier decision, and the question on section 32A was held to follow consequentially from that reasoning. On the question under section 35B(1)(iv), the Court noted existing divergence of view and the pendency of the issue in the Supreme Court, and therefore considered it fit for reference as well.

Conclusion: The Tribunal was directed to refer all three questions under section 256(2) of the Income-tax Act, 1961.

---