2002 (11) TMI 28 - HC - Income Tax

Weighted deduction under section 35B - expenditure on account of sale of goods to the foreign tourists in return of foreign exchange - expenditure which qualifies for deduction under section 35B(1)(b)(iii) will have to be expenditure incurred outside India in connection with distribution, supply, or provision outside India of such goods, services or facilities - expenditure on account of sale of goods to the foreign tourists in return of foreign exchange was not eligible for weighted deduction under section 35B

Summary

The High Court of Delhi ruled that the expenditure on sales made in India to foreign tourists in foreign exchange was not eligible for weighted deduction under section 35B of the Income-tax Act, 1961. The court referred to previous judgments and decided in favor of the Revenue against the assessee as the expenditure did not qualify for deduction. The question was answered in the negative, and no costs were awarded since the assessee was unrepresented.