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TMI Blog1989 (1) TMI 162X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee contended that reimbursement of medical expenses and insurance premium could not be held as perquisite for the purposes of s. 40(c) as held by the Hon'ble Delhi High Court in CIT vs. Bharat Ram Charat Ram P. Ltd. (1985) 47 CTR (Del) 5 : (1986) 157 ITR 199 (Del), and Instalment Supply Pvt. Ltd., vs. CIT (1984) 41 CTR (Del) 334 : (1984) 149 ITR 457 (Del). He also referred to a Circular of CBDT being Circular No. 376 dt., 6th Jan., 1984 reported in (1984) 38 CTR (TLT) 18 : (1984) 146 ITR (St) 62, stating that reimbursement of medical expenses by anemployer to an employee will be taxable only in excess of Rs. 5,000 per annum. He pointed out that in the case of the assessee the amount was only Rs. 5086. The excess was marginal and, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction under s. 35 of the Act on expenditure aggregating to Rs. 9,98,938 as detained below: (i) Expenditure on foreign travelling for export sales Rs. 2,84,448 (ii) Expenditure on foreign exhibitions Rs. 59,400 (iii) Commission to agents in foreign countries for obtaining export orders Rs. 27,428 (iv) Expenditure on advertisement and publicity outsideIndia Rs. 56,178 (v) Commission to Indian Agents Rs. 11,956 (vi) Fright and forwarding expenses Rs. 2,67,349 (vii) Insurance charges for consignment exported Rs. 27,345 (viii) Salaries of staff engaged in export development Rs. 1,16,670 (ix) Rent (for the premises in occupation of export Department) Rs. 13,622 (x) Bank charges Rs. 3,646 (xi) Inspection charges (fe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (d) Salary to staff exclusively engaged in Export Department . Rs. 58,335 (e) Rent . Rs. 6,811 (f) Bank charges . Rs. 3,646 (g) Inspection charges fee . Rs. 10,409 (h) Export Department execution expenses : . . . (i) Telephone charges 63,149 . . (ii) Conveyance 10,572 . . (iii) Stationery 8,775 . . (iv) Tender Purchases 954 . . (v) Electric expenses 317 . . (vi) Car expenses 1,920 . . (vii) Other Misc., expenses 2,197 Rs. 87,884. (i) Hospitality to foreign Exchange . Rs. 25,950 (j) Difference in Foreign Exchange . Rs. 6,653 (k) Salary to other officials: . . . Shri K.G. Khosla, Managing Director . Rs. 1,35,000 . Sh. Deepak Khosla, vice-president . 32,076 . Shir V.K. Naza ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction under s. 35B by the Special Bench of the Tribunal in the case of J.Hem Chand and Co., vs Second ITO (1982) 1 SOT 150 (Bom) (SB). For the asst. yr. 1974-75, in the case of the assessee itself, such a claim has been allowed by the Delhi Bench 'D' of the Tribunal in ITA No. 1371/Del/78-79 dt., 29th Feb., 1980, a copy of which has been placed in the paper Book at pages 50-58. Respectfully following the above judgment, we direct that weighted deduction should be allowed on commission to Indian agents on expenditure of Rs. 11,976. The order of the CIT(A) on this point is reversed. 10. Regarding weighted deduction on salary of staff engaged in Export Department, we notice that this issue is also covered by the judgment of the Special Bench ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ference in the order of the CIT(A) is called for. The expenditure of Rs. 1,339 on export credit and guarantee is covered in favour of the assessee by the Special Bench in the case of J. Hem Chand and Co., referred to above. The order of the authorities below on this account is therefore reversed. 12. We also notice that the claim of weighted deduction has been allowed on commission to foreign agents for the asst. yr. 1974-75. Respectfully following of the Tribunal, we are unable to uphold the action of the Commissioner (A) in withdrawing the weighted deduction allowed by the ITO on commission to foreign agents as Rs. 27,427. The order of the CIT(A) on this account is therefore reversed and that of the ITO is restored. 13. We notice that w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., Ltd, for the asst. yrs. 1977-78 to 1979-80. Copies of these orders have been placed in the placed in the paper book on Pages 30 to 38 and 39 to 46. Respectfully following these orders, we allow the claim of the assessee in respect of foreign delegation expenses also. 17. Regarding weighted deduction on rent of Export Division, we would like to add that we have already considered 50 per cent of the expenses of the Export division for weighted deduction as reasonable. In that background, we are of the opinion that 50 per cent of the rent of the export division will also be entitled to weighted deduction. Consequently, the weighted deduction withdrawn by the CIT(A) on such expenses at Rs. 6,881 cannot be sustained. His order to this extent ..... X X X X Extracts X X X X X X X X Extracts X X X X
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