Modification in Instruction No. 876. - Income Tax - 969/CBDT

INSTRUCTION NO. 969/CBDT Dated : July 8, 1976 Attention is invited to para 6 of the Board's Confidential Instruction No. 876* (F. No. 491/16/75-FTD dated 6th September, 1975) on the above subject. 2. The Reserve Bank of India had earlier requested the tea companies to furnish statements showing the actual expenses incurred by them for the year 1974 towards the maintenance of U.K. office and the remittances were to be allowed on the basis that the actual amount to be remitted for 1974 was not in excess of what was allowed for the year 1973. 3. The Indian Tea Association, however, represented that a decision announced in 1975 should not be made applicable retrospectively for the year 1974 in respect of which the companies had already incurred expenditure on the basis of long standing agreements. The Government have since considered this representation and it has been decided that the payment of commission for the year 1974 on Indian sales of tea be allowed on the same basis as for the year 1973 without any monetary ceiling being imposed. 4. In view of this decision of the Government, Instruction No. 876 would stand modified to that extent. This may please be brought to the notice of the Income-tax Officers in your charge.