TMI Blog1993 (9) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... n under section 35B of the Income-tax Act, 1961, in respect of the following items of expenditure : "Nature of expenditure Amount Rs. 1. Freight charges 3,68,708 2. Export inspection charges 8,783 3. Brokerage 562 4. Insurance 5,247 5. Bank charges 12,707 6. Clearing charges 41,250." The admitted position is that all the expenses mentioned in the above referred question were incurred by the assessee in India, though in connection with carriage of the goods to their destination outside India. Learned counsel for the Revenue submits that the controversy in this case is fully covered by the decision of this court in M. H. Daryani v. CIT [1993] 202 ITR 731 and a number of other decisions of this court on the point. L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tside India and on insurance of such goods while in transit. It contains a specific prohibition on the allowability of weighted deduction on such expenditure. This clause came up for the consideration of this court in M. H. Daryani's case [1993] 202 ITR 731, where it was observed (at page 734) as under : "A close reading of this clause makes it clear that allowance by way of weighted deduction contemplated by clause (a) of sub-section (1) of section 35B is available to an assessee specified therein who claims to fall under sub-clause (iii) of clause (b) only on the ground of the expenditure being incurred wholly and exclusively on the distribution, supply or provision outside India of such goods, services or facilities which the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instant case, it is also not allowable on expenditure incurred on account of (i) export inspection charges, (ii) brokerage, (iii) bank charges, and (iv) clearing charges as these were incurred in India. The only question that survives for consideration is whether, in such a situation, weighted deduction can be claimed by the assessee on expenditure on freight and insurance, etc., under sub-clause (viii). In other words, whether despite the specific prohibition in sub-clause (iii) on allowance of weighted deduction on freight and insurance, it can be allowed by resort to sub-clause (viii). The answer, in our opinion, has to be in the negative. It is a well-settled principle of interpretation that a statute must be read as a whole and every ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (iii) wherein the conditions and restrictions on the allowability of weighted deduction thereon has been laid down. We are, therefore, of the clear opinion that allowability of weighted deduction on expenditure falling under sub-clause (iii) will have to be determined with reference to the conditions and restrictions specified therein and not with reference to any other sub-clause which deals with expenditure of general nature. We find it difficult to agree with the opinion of the Punjab and Haryana High Court in CIT v. Roadmaster Industries of India Pvt. Ltd. [1993] 202 ITR 968 that each sub-clause must be read independently and that the terms of one sub-clause cannot be read into those of another sub-clause. This view is not in con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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