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Section 35C of the Income-tax Act, 1961 - Agricultural Development Allowance - Application of Provision Weighted deduction under section 35C was not allowable on expenses incurred on provision of distillation services, expenses on transportation services provided to farmers, depreciation on assets used for agricultural research centre while it was allowable on fertilizer subsidy paid to farmers in cash Richardson Hindustan Ltd.v.CIT [2009] 315 ITR 283 (Bom.) Weighted deduction under section 35C was not allowable on expenses incurred on provision of distillation services, expenses on transportation services provided to farmers, depreciation on assets used for agricultural research centre while it was allowable on fertilizer subsidy paid to farmers in cash. Section 35C(1)(b) contemplates that goods, services or facilities in respect of fertilizers may be considered for grant of weighted deduction. If cash subsidy is granted in relation to the purchase of fertilizers that would be no different from providing services relating to supply of fertilizer. Such services or facilities would be covered by section 35C(1)(b)( ii). J.D. Mistry, Ms. Payal Parikh, Ms. Nikita Kadam and M Legal Venture for the Appellant. P.S. Sahadevan for the Respondent. JUDGMENT R.S. Mohite, J. - The questions of law referred to this court under section 256(1) of the Income-tax Act, 1961, are as under : At the instance of the assessee: "(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in rejecting the claim of the assessee-company for weighted deduction under section 35C on : (a) various expenses incurred on provision of distillation services ; (b) expenses on transportation services provided to farmers ; (c) depreciation on assets used for agricultural research centre ? At the instance of the Revenue : (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in allowing the assessee's claim of weighted deduction under section 35C on fertilizer subsidy to farmers as cash subsidy amounting to Rs. 2,78,384 ?" 2. In our view, question No. 1( a) is covered by a judgment passed in Income-tax Reference No. 315…

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