THE COMMISSIONER OF INCOME TAX(CNTL), LUDHIANA vs M/S HERO CYCLES PVT. LTD. LUDHIANA

The Supreme Court addressed the interpretation of Section 35-B of the Income Tax Act, 1961, concluding that the Appellate Tribunal erred in allowing the assessee's claim for weighted deductions related to Export Sales Commission, E.C.G.C. Charges, and Foreign Dealers Visiting Expenses. The Court held that rectification under Section 154 is only permissible for glaring mistakes of fact or law, and since the dispute involved a mixed question of fact and law, the Tribunal's decision was overturned. The appeal was allowed in favor of the Revenue, with no order as to costs.