1987 (6) TMI 77

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....roceedings was the claim of weighted deduction under section 35B on expenses relating to the activities enumerated in the various sub-clauses of clause (b) of sub-section (1) of section 35B of the Income-tax Act, 1961. This was not accepted by the Income-tax Officer on the ground that the assessee's business was not that of an exporter and, therefore, the provisions of section 35B cannot be invoked by the assessee to claim weighted deduction on expenses, which, according to it, were on activities enumerated in the various sub-clauses of clause (b) of sub-section (1) of section 35B. When the matter went up in appeal, the Commissioner of Income-tax (Appeals) held that the assessee was entitled to the claim of weighted deduction under section ....

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....ncies (P.) Ltd. [IT Appeal No. 1768 (Bom.) of 1984]. We were taken through the order in order to point out that Ampi Agencies (P.) Ltd. had taken over the business of the assessee-firm and were carrying on the identical business. Shri Sonde pointed out that in this case where the business was identical, the Appellate Tribunal by order dated 24-9-1986 held that the claim of weighted deduction under section 35B was admissible. He then referred to another order of the Appellate Tribunal in the case of Indian Hotels Co. Ltd. v. ITO [IT Appeal No. 467 (Bom.) of 1975-76] where also even though there was no export at all, the claim of weighted deduction under section 35B was held to be admissible. He, therefore, vehemently argued before us that th....