TMI Blog2004 (9) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... UDGMENT The judgment of the court was delivered by Badar Durrez Ahmed J.- Income-tax Reference No. 5 of 1995: This reference, at the instance of the Revenue, pertains to the assessment year 1983-84. The question that has been referred for the determination of this court is as under: "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct on facts and in law in directing that the weighted deduction under section 35B may be allowed to the assessee in respect of the sum of Rs. 6,99,489 incurred under the head export consultancy charges?" Section 35B of the Income-tax Act, 1961, relates to export market development allowances and by virtue of the provisions of this section, inter al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee; ..." We are concerned with clause (a) and the proviso thereto. There is no dispute that the expenditure of Rs. 6,99,489 incurred under the head export consultancy charges was, in fact, an expenditure for conducting pre-investment surveys or the preparation of feasibility studies or project reports. However, there is a dispute with regard to the fulfilment of the conditions stipulated in the proviso. Before an amount expended on a pre-investment survey could be allowed as a deduction, one of the two conditions specified in the proviso needs to be fulfilled. A request in writing must have been made either by the Central Government or by a foreign party to whom such goods, services or facilities were likely to be sold or provided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quality control expenses of Rs. 75,000?" In fact, the decision of the Tribunal rendered in this matter was on the basis of the observations of the Tribunal recorded at para. 19 of its decision which reads as under: "19. After taking into consideration the rival submissions and looking to the facts available on record, and going through our earlier decision in the case of Junach (P) Ltd., we find that a sum of Rs. 13 lakhs had been allowed for the same assessment year in case of Junach (P) Ltd. by us and the said decision has been accepted by the Revenue. With regard to other two claims we are satisfied that these are covered by the provisions of section 35B. The commission to the foreign agents have been paid for multifarious activitie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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