1979 (10) TMI 123

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... n India and the fact of his being abroad would not make any difference. In the assessee's appeal before the Commr. (Appeals) the assessee urged that such deduction could be allowable under sub-cls. (ii), (vi) or (viii) of s. 35B(1)(b) and that it is now well established that the expenditure incurred in India need not be disallowed for weighted deduction. The Commr. (Appeals) observed that it was difficult to say that salary of an employee during the period of his tour should be treated as expenses for promoting export business. The Commr. (Appeals), however, referred to a Tribunal decision in ITA Nos. 3255 3330 (Bom) / 1976-77, in which it was held that common expenses could be apportioned and weightage given. The Commr. concluded that th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... e High Court decision in Balanoor Tea Rubber Co. Ltd.,(1) which according to the Commr., was approved by the Supreme Court in Cambay Electric Supply Industrial Co. Ltd. (2) The Commr. was of the view that the provisions of s. 80E considered in 93 ITR were similar in wording to the provisions of s. 80QQ and held that the assessee was eligible for 20 per cent relief on the entire sum of Rs. 19,97,578, i.e. Rs. 3,99,516, subject to the limit provided in s. 80A(2). The Commr. accordingly granted further relief of Rs. 3,24,000 over and above the relief of Rs. 75,512 allowed by the ITO. 4. We have heard the parties and are of the view that the Revenue's contention is devoid of merit. The provisions of s. 80QQ\read as under: "80QQ (1) Deduct .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... total income of the assessee, a deduction from such income of an amount equal to.... " The High Court held in this case that the amount chargeable under the head 'Capital gains' would only be the amount computed in accordance with the provisions of ss. 45 and 48 and those two provisions did not envisage adjustment of any other loss, either of the same year or of a different year. The high Court further referred to the Supreme Court decision Cloth Traders (4) and held that the deduction under s. 80T should be allowed on the gross amount of capital gains before setting off of business loss for the same year under s. 71. The wordings of s.80T considered by the High Court and that of 80QQ under present consideration are practically identical .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X