TMI Blog1986 (9) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... their sale to U.S.S.R. through its purchase agency, M/s. Rozno Exports. It claimed weighted deduction under section 35B of the Income-tax Act, 1961 (hereinafter called " the Act "), on payment of commission of Rs. 3,10,749.99 to M/s. Singh and Co., New Delhi, and M/s. Handicraft Handloom Export Corporation, which was disallowed by the Income-tax Officer. The Commissioner of Income-tax (Appeals), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 86 [ CIT v. Bhagat Brothers [1987] 165 ITR 660 (P H) ], we had issued a mandamus to the Tribunal for referring such a question. Now, after hearing Mr. G. C. Sharma, learned counsel for the assessee, we find that the implication of the opinion expressed by the Central Board of Direct Taxes in paragraph 7 of the Instruction No. 1487 dated October 19, 1982, was not correctly projected before us. Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... technical knowhow, to persons outside India ; and (b) The expenditure in relation to which weighted deduction has been claimed is incurred by the assessee wholly and exclusively for the purposes of the business referred to in (a) above. " These additional conditions contained in clauses (a) and (b) of paragraph 7 were introduced by the Finance Act, 1978, with effect from April 1, 1978, and lat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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