9911796707
TMI Blog1991 (12) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... ion 35B on Rs. 45,70,837 (export inspection fees paid in India Rs. 31,520, export freight paid in India Rs. 44,77,604 and foreign travelling expenses Rs. 61,713)? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in not admitting the additional ground claiming deduction of Rs. 1,88,743 being customs duty payable by the assessee ?" The assessee-company carries on the business of manufacturing textiles, steel tubes, machineries, cylinders and chemicals. During the course of assessment proceedings for the assessment year 1975-76, the assessee had made, inter alia, claims for weighted deduction under the provisions of section 35B of the Act. The assessee claimed weighted deduction on export commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n so far as the second question is concerned, it may be stated that it was raised for the first time on behalf of the assessee before the Tribunal. During the course of the appeal before the Tribunal, the assessee had advanced it as an additional ground whereunder the assessee claimed weighted deduction on customs duty amounting to Rs. 1,88,743. As such a claim was not made either before the Income-tax Officer or before the Commissioner, the additional ground raised on behalf of the assessee claiming weighted deduction of customs duty was not accepted by the Tribunal. In the aforesaid facts, at the instance of the assessee, the Tribunal has referred to us, for our opinion, the aforesaid two questions. In so far as question No. 1 is concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll under section 35B(1)(b)(vi) of the Act. The amount claimed by the assessee in that case was disallowed by the Income-tax Officer. The Commissioner and the Tribunal allowed the claim of the assessee for weighted deduction. On a reference, the Revenue contended that, for claiming weighted deduction under section 35B(1)(b)(vi) of the Act, the assessee had to establish that the expenses had been incurred outside India and since the inspection agency fees had been paid in India, the assessee was not entitled to claim weighted deduction on the expenditure. It was held in the facts of that case that the export agency inspection fees paid by the assessee for the purpose of obtaining the certificate, which was a necessary requirement for the expo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in that case in the light of the answer of this court. This submission would have had greater force and we would have gone deeper into the matter had the amount been substantial and significant. Since the amount involved is very small, we do not think it necessary to accept the alternative submission also. Hence, this submission is also rejected. In so far as export freight paid in India of Rs. 44,77,604 is concerned, the Income-tax Officer had held that the expenditure claimed by the assessee towards export freight would fall within sub-clause (iii) of clause (b) of sub-section (1) of section 35B of the Act. Therefore, this claim was rejected by the Income-tax Officer. The view of the Income-tax Officer was confirmed by the Commissioner a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s court as far as this item of expenditure is concerned. Therefore, we confirm the view taken by the taxing authorities. In view of the aforesaid discussion, we decide question No. 1 in the affirmative and against the assessee. In so far as the second question is concerned, it will not detain us any longer as it is directly covered by the Full Bench decision of this court in the case, of CIT v. Cellulose Products of India Ltd. [1985] 151 ITR 499. The view taken by the Tribunal is fully justified and as it is in consonance with the ratio of the decision of the Full Bench of this court, it is not necessary to enter into the factual aspects in greater detail. In the result, we answer question No. 2 in the affirmative and against the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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