2014 (11) TMI 602

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng of application of sec. 35C of the I.T. Act, 1961?            2. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the entire expenditure of Rs. 67,31,611 was not eligible for weighted deduction u/s. 35C of the I..T. Act?         3. Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that only 10% of the expenses incurred on dissemination of information of demonstration of modern technique or method of agricultural animal husbandry or dairy or poultry farming or advice on such technique or method is eligible for deduction u/s. 35C of the Act?" 3. The ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....w deduction u/s. 35C in accordance with the directions contained in the said order. The Tribunal upheld the findings of the CIT(A) on the issue. 4.The reference which has been referred by the Tribunal is squarely covered by the decision of this Court in the case of Kaira Dist. Coop. Milk Producers Unions Ltd. v. Commissioner of Income-Tax reported in 253 Income Tax Reports 766. 5.On a reference, the Court in the case of Kaira Dist. Co-op. Milk Producers Unions Ltd. (supra) held that :-            "(iii) That the Appellate Tribunal was not right in holding that only 10 per cent of such expenditure was eligible for weighted deduction, because the recipients of the services or facilities obt....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....erwise eligible for weighted deduction, does not fall within the nature of expenditure described in clause (a) of section 35C(1). The only requirement is that the recipient and the surrounding areas should benefit by way of development and weighted deduction is granted so as to subserve the purpose of development of the rural area. The condition that such recipients should be in a position to undertake such activities on their own is not borne out on a plain reading of the provisions. The Explanation which lays down the mode of computing the eligible amount of expenditure indicates that it is not necessary that the recipient of services or facilities must himself imbibe the mode or technique to the extent that the recipient can himself und....