9911796707
TMI Blog1980 (11) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... The Managing Director of the assessee company, who was using the car was unmarried and the car was stated to have been exclusively used for the business of the company, as the sales in this year amounted to Rs. 23 lakhs. The total claim for the car expenses was made at Rs. 17,696. 3. After hearing the parties, we are of the opinion that no part of the car maintenance expenses could be disallowed in the hands of the company, as the company is a separate entity and it is the business of the company to provide a car to the Managing Director to carry on the business of the company efficiently and effectively. Even if there was some personal user of the car it could possibly be considered for assessment as a perquisite in the hands of the Manag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the goods. In the process an assessee could even be furnishing to the foreign party technical information for the promotion of sales. We are in respectful agreement with the foregoing reasons and accordingly allow the assessee's claim for Rs. 6,504. We may also mention that the assessee's similar claim was allowed by the AAC for the asst. yr. 1977-78 and the Department seems to have accepted it. 5. The next contention is common to both the years under appeal and relates to the disallowance of the assessee's claim for depreciation at the rate of 15 per cent and instead allowing the depreciation at the rate of 10 per cent on sewing machines. On this point the AAC has directed the ITO to examine the assessee's claim in respect of depreciati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailing at the relevant time. The Dept. Rep. supported the order of the AAC. 9. On consideration of the facts and circumstances of the case we find considerable force in the submissions made on behalf of the assessee. According to the sub-cl. (vi) of s. 35B(1)(b) weighted deduction is admissible in respect of expenditure on furnishing to a person outside samples for promotion of sales. On facts there is no dispute that the assessee did prepare samples to be furnished to the foreign buyers. The foreign buyers have given three certificates according to which samples worth about $ 6400 were prepared by the assessee. It is true that some of those samples were rejected by the foreign buyers and others were taken by them. The fact, however, rema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ial for considering the assessee's claim for relief under s. 80J was available on the record of the ITO in the shape of profit and loss account, balance-sheet and audit report. For the asst. yr. 1977-78 the assessee preferred its claim under s. 80J before the ITO but it was disallowed and disallowance was confirmed in appeal by the AAC. We would dispose of both these grounds. 12. After hearing the parties, we find that the assessee's claim for the asst. yr. 1977-78 was disallowed by the ITO under r. 19A(3) of the IT Rules, 1962. The disallowance was confirmed in appeal by the AAC. The assessee's contention before us is that in view of the decision of the Calcutta High Court in Century Enka Ltd. vs. ITO 1976 CTR (Cal) 433 : (1977) 107 ITR 9 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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