9911796707
TMI Blog2001 (10) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... intaining the warehouse for the promotion of the sales of its tea outside India - tribunal was justified in holding that the assessee is entitled to weighted deduction under section 35(1)(b)(iv) as well as u/s 35(1)(b)(ix) - - - - - Dated:- 16-10-2001 - Judge(s) : S. P. BHARUCHA., Y. K. SABHARWAL. and BRIJESH KUMAR. JUDGMENT The Revenue is in appeal by special leave against the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt runs a warehouse for the purpose, and the expenditure on the warehouse is reimbursed by the assessee to the said agent. It was held by the Appellate Assistant Commissioner and confirmed by the Income-tax Appellate Tribunal and the High Court that the maintenance of an agency for the promotion of sales under section 35B(1)(b)(iv) of the Income-tax Act had a broad meaning and embraced within i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... services or facilities;. . ." The question, therefore, is whether the reimbursement by the assessee to the said agent of the expenditure incurred on the warehouse used by the agent for the storage of the assessee's tea falls within the scope of the said sub-clause (iv). The argument on behalf of the Revenue heretofore was that the assessee had not a warehouse of its own in a foreign country ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of section 35B(1)(b)(iv) in its judgment in Aravinda Paramila Works v. CIT [1999] 237 ITR 284. Having analysed the provision, this court held that what was requisite was that the assessee should have maintained the branch, office or agency outside India and that such branch, office or agency should be for the promotion of sales outside India of the assessee's goods, services or facilities. It wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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