Law:

Section:

Section 35B of the Income-tax Act, 1961 - Export market development - Allowance CIT v. Zenith Steel Pipes & Industries Ltd. [2009] 315 ITR 95 (Bom.) Weighted deduction under section 35B on the expenditure under the head, 'advertisement and publicity in newspapers and magazines in India' was not allowable where major part of goods was sold in India. Further expenditure by way of fees paid for certificates of origin and legalisation of export documents and stamp fees would not be eligible for weighted deduction under section 35B. Amount paid to export inspection agency as inspection charges, expenditure on special packing on goods exported, and proportionate printing and stationery and rent for teleprinter and direct telephone lines were also not entitled to weighted deduction. However, the expenditure on gifts to foreign parties was entitled to weighted deduction in view of section 35B(1)(b)( a)(ix). [Partly in favour of assessee] [Assessment years 1976-77, 1977-78, 1978-79 and 1979-80]. Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of - Market Survey Expenses Where assessee, manufacturing steel items, conducted a market survey, as by very purpose and nature of report same pertained to a different line of business, expenditure on market survey was a non-deductible capital expenditure [Assessment year 1976-77] [In favour of revenue] CIT v. Zenith Steel Pipes & Industries Ltd. [2009] 315 ITR 95 (Bom.) Where the assessee, manufacturing steel items, conducted a market survey, as by the very purpose and nature of the report the same pertained to a different line of business, the expenditure on market survey must be held to be non-deductible capital expenditure in view of the Bombay High Court decision in CIT v. J.K. Chemicals Ltd. [1994] 207 ITR 985 . Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of Fees paid to Registrar of Companies amounts to a capital expenditure [In favour of revenue] [Assessment years 1976-77 and 1979-80] CIT v. Zenith Steel Pipes & Industries Ltd. [2009] 315 ITR 95 (Bom.) In view of the decisions in Brooke Bond India Ltd. v. CIT [1997] 225 ITR 798 (SC) and Punjab…

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