TaxTMI 
TaxTMI 
1996 (3) TMI 46
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....of the same through banks and allied correspondence ? " In the assessment relating to the assessment year 1978-79, the Income-tax Officer had allowed depreciation on the lift in the assessee-company's office building at ten per cent. applicable to the category coming under "General electric machinery" as against the assessee's claim for its classification as "rope-way structures-carriers" entitled to the higher rate of 15 per cent. as per entry III(ii)B(15) of the depreciation Schedule. The Corn missioner of Income-tax (Appeals) upheld the Income-tax Officer's finding. The assessee appealed to the Tribunal. The Tribunal concurred with the Commissioner of Income-tax (Appeals)' finding in the following words : " Ropeway is defined in Chamber's Twentieth Century Dictionary as 'a means of transmission by ropes'. Rope is defined as 'a stout twist of fibre, wire, etc.' The term 'lift' is defined as an enclosed platform moving in a well to carry persons or goods up and down. Though a lift carries passengers or goods, we are of the view that it is a different species from what is contemplated under the cited entry. The term "carrier" therein is related to ropeway structure which is tot....
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....siness purposes, the higher depreciation is allowed in the case of lift. Accordingly, we hold that for the lift, the assessee is entitled to 15 per cent. depreciation. In that view of the matter, we answer question No. 1 referred to us in the negative and in favour of the assessee. So far as question No. 2 is concerned, it relates to weighted deduction claimed under section 35B of the Income-tax Act, 1961. The assessee claimed in the assessment year 1978-79 weighted deduction under section 35B(1) in respect of expenditure incurred for attestation and legalisation of export invoices, (ii) in respect of legal expenses incurred in connection with export of flats to Pakistan both amounting to Rs. 570, and (iii) in respect of salary, allowances, contribution to provident fund paid to the members of the staff attributable for services rendered in processing and shipping materials, preparation of export documents, negotiation of the same through banks and allied correspondence amounting to Rs. 28,172. The Income-tax Officer rejected the assessee's claim for weighted deduction in respect of the above items as in the earlier years. On the assessee's appeal, the Commissioner of Income-tax (....
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....ot relate to the activity mentioned under sub-clause (v) inasmuch as the expenditure was not incurred for preparation and submission of tenders. It remains to be seen that a sum of Rs. 28,172 was incurred as expenditure by way of salary, allowance, contribution to provident fund paid to the members of the staff attributable to services rendered in processing and shipping materials, preparation of export documents, negotiation of the same through banks and allied correspondence. Weighted deduction is claimed under sub-clause (v). Sub-clause (v) relates to expenditure incurred for preparation and submission of tenders, According to the facts arising in this case, the assessee purchased tender forms and after processing the same, the foreign contract was obtained for export of the goods to foreign countries. Purchase of tenders and processing of the same were stated to be done by the staff of the export wing. One of the activities done by the staff of the foreign wing is stated to be preparation of export documents. Export commences from offering to accept the tender for the export of goods. Therefore, purchase and processing of tender forms would come under preparation of export doc....
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.... weighted deduction, the expenditure ought not to have been incurred in India. It is only under sub-clause (iii) alone the expenditure claimed cannot be allowed unless it is incurred in a foreign country. In the case of CIT v. Aspinwall and Co. Ltd. [1993] 204 ITR 225, the Kerala High Court while considering section 35B of the Act along with the Central Board of Direct Taxes Circular F. No. 268/738/Sl. I.T.J. dated December 28, 1981, held that the amounts came under sub-clauses (ii), (v) and (vi) of section 35B(1)(b) for weighted deduction and the fact that expenditure was incurred in India was of no consequence. The Gujarat High Court in Testeels Ltd. v. CIT [1994] 205 ITR 230 held that salary paid to employees working in the foreign wing is entitled to weighted deduction under section 35B(1)(b) of the Act. In the case of Associated Stone Industries Ltd. v. CIT [1994] 210 ITR 821 (Raj), a question arose whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that weighted deduction under section 35B of the Income-tax Act was not allowable in respect of expenditure of Rs. 4,287 being 25 per cent. of salary of staff looking after export busin....