Law:

Section:

Section 35B of the Income-tax Act, 1961 - Export markets development allowance Weighted deduction under section 35B is permissible only if expenditure is laid out wholly and exclusively for purposes mentioned in clause (b ) of section 35B(1). [A.Y. 1980-81]. The Assessing Officer disallowed the claim for weighted deduction on the ground that the same was admissible only if the expenditure was incurred for the purpose of export and not admissible only on the ground that it was part of business expenditure. The Commissioner (Appeals) and also the Tribunal allowed the assessee's claim without recording any finding that the expenditure was relatable to clause (b) of section 35B(1). Held that the Supreme Court in CIT v. Hero Cycles (P.) Ltd. [1997] 228 ITR 463, has held that deduction is permissible if expenditure is laid out wholly and exclusively for the purposes mentioned in clause (b) of section 35B(1). Since the Commissioner (Appeals) as well as the Tribunal had not gone into the correctness of findings recorded by the Assessing Officer with reference to the provision of section 35B(1)(b), the matter was remanded to the Commissioner (Appeals) for fresh decision in accordance with law. S. K Garg Narvana for the Commissioner. JUDGMENT Following questions of law have been referred for opinion of this court by the Income-tax Appellate Tribunal, Chandigarh Bench, Chandigarh, arising out of its order dated September 8, 1988, in R. A. No.9/Chandi/89 in respect of the assessment year 1980-81 : (1) "Whether, on the facts and in the circumstances of the case on a proper interpretation of section 35B of the Income-tax Act, 1961, the Appellate Tribunal was right in law in allowing weighted deduction under section 35B of the following items : (a)Subscription paid to Hosiery Exporters Association and Export Promotion Council. (b)salary and bonus. (c)salary, security and guard. (d)printing and stationery. (e)postage, telephone and telegrams. (f)advertisement. (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in allowing weighted deduction under section 35B in respect of packing credit interest ?" The assessee is a firm engaged in…

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