TMI Blog2005 (1) TMI 91X X X X Extracts X X X X X X X X Extracts X X X X ..... 6AA(c) and also that they were relatable to section 35B(1)(b)(iii) which was not operative for the assessment year in question, having been omitted by the Finance (No.2) Act, 1980, and whether the said expenditure was allowable under section 35B(1)(b)(i)? (2) Whether, on the facts and in the circumstances of the case the Appellate Tribunal erred in law in holding that weighted deduction was also not admissible with reference to stationery, printing and postage expenses on the ground that they were relatable to section 35B(1)(b)(iii) which was not operative for the assessment year in question, having been omitted by the Finance (No.2) Act, 1980 and whether the said expenditure was allowable under section 35B(1)(b)(i)? RA No. 338/Del/19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (5/6) 8. Subscription A/c. 5,690 5,690 (publicity outside India (100%) through semi-Govt. offices) 9. Discount to foreign buyers 1,59,812 79,906.00 (publicity outside India) (75%) 10. Commission to agent 60,841 60,841.00 (100%) ----------- 5,45,421.91 The Income-tax Officer has disallowed the applicant's claim. However, the Commissioner of Income-tax (Appeals) allowed the applicant's claim of weighted deduction to the extent mentioned in column 4 of the above Table. Feeling aggrieved the Revenue preferred separate appeal before the Tribunal. The Tribunal ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 35B on the salary to staff (quality controller and checker), no weighted deduction was admissible with reference to the salaries of the managing director and the directors, since they had no part to play in terms of rule 6AA(c). The Tribunal has further held that this salary could be said to be relatable to sub-clause (iii) of section 35B(1)(b) which was not operative for the assessment year in question, having been omitted by the Finance (No.2) Act, 1980. So far as item No.4 dealing with export development account (publicity outside India) is concerned, this expenditure was held to be clearly relatable to sub-clause (i) of section 35B(1)(b) which was operative for the assessment year in question and, therefore, weighted deduction at 100% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eighted deduction in respect of the salary of directors and managing director. Further it cannot be justified under rule 6AA(c) of the Rules because the applicant had maintained certain staff for the purpose, it cannot be said that the salary has been paid to the directors and managing director for maintaining laboratory and other facilities for quality control or inspection of such goods. In this view of the matter the Tribunal was justified in not allowing the weighted deduction in respect of the salary paid to the directors and managing director. So far as weighted deduction on the expenses of stationery printing and postage is concerned it is not permissible in respect of the items as it falls under sub-clause (iii) of section 35B(1)(b) ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
