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TMI Blog2002 (11) TMI 47X X X X Extracts X X X X X X X X Extracts X X X X ..... D. K. JAIN., MS. SHARDA AGGARWAL. JUDGMENT The judgment of the court was delivered by D.K. JAIN J.-At the instance of the Revenue, the Income-tax Appellate Tribunal, New Delhi (for short "the Tribunal"), has referred under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), the following question for our opinion "Whether, on the facts and in the circumstances of the case, the assessee is entitled to weighted deduction under section 35B of the Income-tax Act, 1961, in respect of the foreign travel expenditure of Rs. 38,689 of Mr. R. Chand ?" Briefly stated, the material facts giving rise to the present reference are: The assessee is a private limited company engaged in the business of consultancy services. During t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction in respect of the above expenditure. The assessee is undoubtedly entitled to the weighted deduction also as per the provisions of section 35B as existing at the relevant time. The assessee is promoting the export of its services. It is not necessary that actual export is to be effected. Even in respect of the services an assessee is entitled to weighted deduction as has been held by the Special Bench decision in the case of Eastern Bulk Services v. ITO [1983] 5 ITD 471. In my opinion, the assessee satisfied all the conditions required for grant of weighted deduction in respect of the expenditure incurred. Accordingly, the assessee is entitled to the weighted deduction claimed." On the Revenue's moving an application under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income-tax (Appeals) had also noticed that the assessee-company had not carried out any activity of consultancy services outside India as there was no firm commitment by Steel and Allied Products Ltd., who had retained the assessee to prepare a feasibility report for setting up a tungsten carbide tool tips project in collaboration with the foreign party. On the contrary, we find that while holding that the assessee was entitled to weighted deduction on the said amount, the Tribunal has not even remotely adverted to the findings recorded by the Commissioner of Income-tax (Appeals). The Tribunal has merely observed that "the assessee is promoting export of its services". The basis for arriving at this conclusion is not indicated b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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