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TMI Blog1978 (12) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee by the ITO Central Cir.IX, Madras under s. 143(3) of the IT Act, 1961, r/w s. 144(b) thereof for the asst. yr. 1974-75 the relevant previous year ending 31st Dec., 1973. 2. The assessee is a firm of five partners with a minor admitted to the benefits thereof, carrying on the business of export of hides and skins. It filed the return disclosing income of Rs. 27,43,930. In doing so, it ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The CIT took action under s. 263 on the ground that in so far as the ITO had allowed weighted deduction in respect of expenditure incurred in India on advertisement and publicity, membership fees, foreign travel matters incidental to execution of contract, salaries to the staff engaged in sample section, bank charges, bank interest, commission and brokerage on exports orders etc. Had passed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eduction under s. 35 B and out of total income of Rs. 20,05,001 he had allowed weighted deduction only in respect of expenditure aggregating to Rs. 6,03,312 and that too after getting the approval of the IAC. He pointed out that the observation of the Commissioner that the ITO had not considered each item of expenditure separately is absolutely incorrect. He further said that the order of the ITO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er that the expenditure incurred in India could not be said to qualify for weighted deduction. It has been pointed out by the Bombay High Court in CIT vs. Eldee Wire Ropes Ltd(1)., that under s. 35B of the IT Act, 1961 where the legislature desired to exclude the expenditure incurred in India for the purpose of giving the benefit of deduction to the assessee, it had expressly done so by specifical ..... X X X X Extracts X X X X X X X X Extracts X X X X
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