1984 (3) TMI 84 - AT - Income Tax

Summary

Issues:
- Entertaining the ground of allowance under s. 35B
- Allowing foreign tour expenses for two assessment years

Entertaining the ground of allowance under s. 35B:
The appeals involved the issue of whether the CIT(A) erred in law and on facts by entertaining the ground of allowance under s. 35B. The assessee, a partnership firm, had debited amounts under "export promotion tour account," disallowed by the ITO as enduring capital expenditure. The CIT(A) admitted the additional ground raised by the assessee for the first time, citing relevant case law and a CBDT Circular. The Tribunal upheld the CIT(A)'s decision, emphasizing the duty of the ITO to assist taxpayers in securing reliefs and benefits under the law. The Tribunal found no substance in the Revenue's argument against considering relief under s. 35B without a specific claim by the assessee, relying on relevant legal precedents and circulars.

Allowing foreign tour expenses for two assessment years:
The second issue revolved around the CIT(A) allowing foreign tour expenses for two assessment years. The Revenue argued against extending the benefit of the circular to debatable reliefs and limiting the relief to only foreign tour expenses. The Tribunal, however, upheld the CIT(A)'s decision, stating that it is the duty of the ITO and the first appellate authority to rectify anomalies and grant reliefs to the assessee even without a specific claim. The Tribunal emphasized following relevant circulars and legal precedents, including the decision of the Gujarat High Court and the CBDT Circular of 1955. Ultimately, the Tribunal dismissed the appeals, affirming the orders of the CIT(A) in allowing the foreign tour expenses and entertaining the claim under s. 35B.

This judgment highlights the importance of considering taxpayers' entitlement to reliefs and benefits under the law, even in the absence of specific claims. It underscores the duty of tax authorities to assist taxpayers in securing legitimate reliefs and benefits, as well as the binding nature of relevant circulars and legal precedents in decision-making.