Law:

Section:

Section 35B of the Income-tax Act, 1961 - Export markets development allowance - Assessment years 1974-75 to 1976-77 - Whether assessee-firm which exported certain products outside India was entitled to deduction under section 35B(1) in respect of expenditure incurred on carriage and insurance of such goods - Held, no FACTS The assessee-firm exported certain goods outside India and, in appeal before the AAC for the assessment years 1974-75 to 1976-77, claimed weighted deduction under section 35B(1) in respect of the expenditure incurred on carriage and insurance of such goods. The AAC allowed the assessee's claim, but on further appeal by the revenue, the Tribunal negatived it. On reference : HELD Following the decision in the case of CIT v. K.N. Oil Industries [1982] 134 ITR 651 (MP), the Tribunal was justified in holding that the assessee was not entitled to deduction under section 35B in respect of the expenditure incurred on carriage and insurance of goods meant for exports. JUDGMENT Mankad, Actg. CJ.-The assessee, a registered partnership firm, carries on business of manufacturing hair oils and perfumes. It also exports large quantity of hair oils outside India. In the year of account relevant to the assessment year 1974-75, it incurred an expenditure of Rs. 69,226 for carriage and insurance of the goods exported. In the year of account relevant to the assessment year 1975-76, it incurred an expenditure of Rs. 1,17,959 for carriage and insurance of goods exported. In the year of account relevant to the assessment year 1976-77, it incurred an expenditure of Rs. 10,301 for insurance and Rs. 58,375 for the carriage of goods, which were exported. The assessee, in the course of the assessment for each of the assessment years, did not claim weighted deduction in respect of the said expenditure under section 35B of the Income-tax Act, 1961 ('the Act'). Therefore, the question of allowing weighted deduction under section 35B did not arise before the ITO. In the appeals before the AAC, however, the assessee pressed the above claims. The AAC, for the reasons recorded in his order, allowed the claims. The Revenue being aggrieved by the decision of the AAC preferred…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492