1999 (6) TMI 29 - HC - Income Tax

Business Expenditure Superannuation Fund Export Market Development Allowance Weighted Deduction Law Applicable

Summary

Issues:
1. Interpretation of section 36(1)(iv) of the Income-tax Act, 1961 regarding deduction of initial contribution to superannuation fund.
2. Eligibility of commission paid to Dr. Beck and Co. A. G., West Germany for weighted deduction under section 35B.
3. Eligibility of expenditure on export inspection charges for weighted deduction under section 35B.
4. Eligibility of expenses on loading and unloading for weighted deduction under section 35B.

Analysis:
1. The court referred to the decision in CIT v. Sirpur Paper Mills [1999] 237 ITR 41 to answer in favor of the assessee regarding the deduction of the initial contribution to the superannuation fund.
2. The court relied on the decision in Dr. Beck and Co. (India) Ltd. v. CIT [1993] 202 ITR 922 to answer in favor of the Revenue regarding the commission paid to Dr. Beck and Co. A. G., West Germany.
3. The court analyzed the eligibility of export inspection charges for weighted deduction under section 35B. It referred to previous decisions and discussed the applicability of rule 6AA of the Income-tax Rules, 1962. The court concluded that rule 6AA, which came into force in 1981, cannot be applied retrospectively to the assessment years 1977-78 and 1978-79, and hence, export inspection charges did not qualify for weighted deduction.
4. The court addressed the eligibility of expenses on loading and unloading for weighted deduction under section 35B. Referring to previous decisions, the court concluded in favor of the Revenue.

In summary, the judgment resolved the issues raised by the Revenue and the assessee regarding deductions and eligibility for weighted deductions under specific sections of the Income-tax Act, 1961. The court's analysis included references to relevant legal precedents and interpretations to arrive at decisions in each issue.