9911796707
TMI Blog1991 (12) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... ------------------------------------ Sl. No. Description 1972-73 1973-74 1974-75 1975-76 ------------------------------------------------------------------- Rs. Rs. Rs. Rs. ------------------------------------------------------------------- 1. Weight difference 35,320 49,652 8,150 - 2. Quality allowance 1,16,594 63,993 7,11,492 9,47,040 3. Dalali 11,400 15,137 - - 4. Quota slips ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lali was concerned, he held that the assessee was entitled to one-third of the expenditure incurred by it. In appeal for the assessment year 1973-74, the Commissioner, relying on the decision of the Income-tax Appellate Tribunal (" the Tribunal ", for short), held that the assessee was entitled to weighted deduction in respect of only one-third expenditure incurred for dalali. In appeal for the assessment year 1974-75, the Commissioner accepted the assessee's claim for weighted deduction only to the extent of ten per cent. of kharajat expenses. In appeal for the assessment year 1975-76, the Commissioner, following his order for the assessment year 1974-75, allowed weighted deduction only on dalali. As regards other items of expenditure for all the years, the assessee's claim for weighted deduction was rejected by the Commissioner. On further appeal, the Tribunal found that the expenditure incurred by the assessee by way of dalali or brokerage would be eligible for weighted deduction in full as it was admittedly paid to various parties for bringing about the export sales. With regard to items like weight difference, quality allowance, quota slips and analysis charges, the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We may first deal with the assessee's claim for deduction in respect of weight difference and quality allowance. It appears that the assessee had exported certain quantity of de-oiled cakes. However, when the goods reached their destination, they were found to be less in weight than what was specified. The assessee, therefore, received lesser price to the extent of the weight difference. We fail to see how this could be termed as an expenditure at all. If the assessee receives a lesser price on account of weight difference he could not be said to have incurred any expenditure for distribution, supply or provision of the goods exported. Therefore, there is no question of allowing any weighted deduction in respect of difference in price. Same is the case with quality allowance. The assessee was paid less for the goods exported because they were of inferior quality than the specified quality. This difference in payment also cannot be termed as expenditure incurred by the assessee for distribution, supply or provision of exported goods. Therefore, as in the case of weight difference, the assessee is not entitled to claim weighted deduction in respect of the difference in price on ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal. There is absolutely no evidence or material before us to show that the assessee is entitled to weighted deduction in respect of the entire kharajat expenditure. In fact, in the absence of details and satisfactory explanation on the part of the assessee, it is doubtful whether the assessee could have been allowed weighted deduction even in respect of ten per cent. of the kharajat expenditure. However, the Revenue has not sought any reference and, therefore, the question whether weighted deduction in respect of ten per cent. of the kharajat expenditure could have been allowed or not is not before us. In any case, the assessee has failed to make out a case for weighted deduction in respect of 90 per cent. of the kharajat expenditure which has been disallowed by the Tribunal. Now, only one item of expenditure, i.e., expenditure incurred for analysis remains for our consideration. The assessee had incurred expenditure of Rs. 9,633 in the assessment year 1973-74, Rs. 7,175 in the assessment year 1974-75 and Rs. 79,316 in the assessment year 1975-76 for analysis of the goods exported. It is not disputed that, under the agreement with a foreign concern, namely, European Grains ..... X X X X Extracts X X X X X X X X Extracts X X X X
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