TMI Blog1982 (2) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... t years 1967-68 to 1970-71, but it is concerned with the tax treatment of surplus realized from holdings of foreign exchange owing to devaluation of the rupee. The third and last point is limited to one year, viz., 1972-73, but it relates to the claim for deduction of a provision for gratuity. The assessee is a domestic company engaged in the business of exporting iron and steel goods and other sundry articles. The assessee claimed weighted deduction under s. 35B in respect of expenditure incurred in its export business. The claims, which are now the subject of the present references, were laid by the assessee before the Tribunal as being eligible for weighted deduction under s. 35B(1)(b)(iii) of the Act. At the material time relevant to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uate in India and various other sundry expenses. All these items of expenditure were incurred only in India, and not abroad. Indeed, in examining the assessee's claim under s. 35B(1)(b)(iii), the Tribunal observed : " It was admitted before us that all the items included under this head by the assessee pertain to expenditure incurred in India." In the face of this admission and in the face of the clear provision that the expenditure qualifying for weighted deduction must be expenditure "not being expenditure incurred in India", the Tribunal's decision must be upheld as correct, and the questions of law referred to us for decision on this point for the years 1968-69 to 1973-74 must be answered against the assessee. Mr. Subramaniam for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure under the different heads are incurred " outside India ", a phrase which occurs again and again in the various sub-clauses. To accept learned counsel's argument that the Indian sites of the export expenditure is no disqualification for eligibility for weighted deduction would be to bring in under one broad indiscriminate sweep, all expenses in an exporter's business. If that were the position, Parliament need not have troubled to enact so many clauses in s. 35B. The section would have been simpler and been enacted differently. We have, therefore, no hesitation in rejecting the construction of s. 35B advocated by Mr. Subramaniam for the assessee. The second point on which our opinion is sought in this group of references is ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing terms: " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in allowing the deduction of the provision for gratuity in respect of the employees at Calcutta region for the assessment year 1972-73 ?" The assessee was employing staff and workmen in various places. For the first time in the relevant account year, the assessee made provision for gratuity for all its staff in the aggregate sum of Rs. 88,224. The ITO negatived the whole claim. Of this provision for gratuity, an amount of Rs. 51,186.25 related to the staff in the assessee's establishment at Calcutta. In the appeal against the relevant assessment before the Tribunal, the assessee restricted its claim for deduction to the provision f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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