Conflicting interpretations on weighted deduction provision led to certification for Supreme Court appeal under the Income-tax Act.

Conflicting High Court interpretations on the scope of section 35B(1)(b)(iv) of the Income-tax Act, 1961, concerning weighted deduction, justified reference to the Supreme Court for an authoritative ruling. The Kerala High Court noted that its earlier view was not in accord with the Karnataka High Court's construction of the provision, creating a need for final clarification on the correct legal meaning. The matter was therefore certified as fit for appeal under section 261 of the Income-tax Act, 1961.

---

---

Issues: Whether a certificate should be granted under section 261 of the Income-tax Act, 1961, for an appeal to the Supreme Court on the interpretation of section 35B(1)(b)(iv) of the Income-tax Act, 1961, in view of conflicting High Court decisions.

Analysis: The court noted that its earlier view on section 35B(1)(b)(iv) was not in accord with the view taken by the Karnataka High Court. The existence of a contrary judicial view on the same question made it necessary to obtain an authoritative pronouncement from the Supreme Court on the correct interpretation of the provision governing weighted deduction.

Conclusion: The case was certified as fit for appeal to the Supreme Court under section 261 of the Income-tax Act, 1961.

---