The Commissioner Of Income Tax,Patiala v. M/S Punjab Small Industries And Export Corporation Limited, Chandigarh

I.T.R. No. 10 of 1995 [ 1] IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Income Tax Reference No. 10 of 1995Date of decision: August 25, 2008 The Commissioner of Income Tax,Patiala. .. Applicant. v. M/s Punjab Small Industries and Export Corporation Limited, Chandigarh. .. Respondent. CORAM: HON'BLE MR. JUSTICE HEMANT GUPTA HON'BLE MR. JUSTICE RAJESH BINDAL Present: Ms. Urvashi Dhugga, Advocate for the applicant.Mr. Akshay Bhan, Advocate for the respondent. .. Rajesh Bindal J. The following questions of law have been referred for opinionof this Court by the Income Tax Appellate Tribunal, Chandigarh Bench,Chandigarh (for short, `the Tribunal') arising out of order dated 9.3.1994passed in I.T.A. No. 239 of 1989, for the assessment year 1984-85: “1.Whether on the facts and in the circumstances of thecase, the ITAT was right in law in upholding the order ofthe CIT(A) to allow weighted deduction u/s 35B on theexpenditure incurred on D.A. and incidental charges onthe employees of the assessee outside India ? 2.Whether on the facts and in the circumstances of thecase, the ITAT was right in law in upholding the order ofthe CIT(A) deleting addition of Rs. 44,46,374/- onaccount of interest receivable by the assessee on accrualbasis ? 3.Whether on the facts and in the circumstances of thecase, the ITAT was right in law in upholding the order ofthe CIT(A) in deleting addition of Rs. 13,11,079/- onaccount of advance money received by the assesseeagainst the allotment of plots ?case, the ITAT was right in law in upholding the order ofthe CIT(A) in deleting addition of Rs. 13,11,079/- onaccount of advance money received by the assesseeagainst the allotment of plots ? I.T.R. No. 10 of 1995 [ 2] 4.Whether on the facts and in the circumstances of thecase, the ITAT was right in allowing change of methodof accounting for a specific item of income in the samesource of income ?” The primary issue raised in the present petition regardingchange of method of accounting has been considered by this Court in thejudgment of even date in I.T.R. No. 72 of 1989 –The Commissioner ofIncome Tax, Patialav. M/s Punjab State Small Industries Corporation Ltd.,Chandigarh now The Punjab Small Industries & Export Corporation Ltd.,Chandigarh, for the assessment year 1981-82, has been answered in favourof the assessee and against the Revenue. For the reasons stated therein, which shall be read as part of thepresent order as well, the questions referred to above, are answered againstthe Revenue and in favour of the assessee. The reference is disposed of accordingly. (Rajesh Bindal)Judge August 25, 2008mk (Hemant Gupta) Judge