1999 (7) TMI 7

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..... ut oil cake by solvent extraction process claimed weighted deduction under section 35B(1)(b)(iii) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), in respect of laboratory expenses amounting to Rs.39,921 and Rs.41,160, respectively. The Assessing Officer rejected the claim and the Appellate Commissioner of Income tax (Appeals) upheld the decision of the Assessing Officer. On fur .....

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..... iture (not being in the nature of capital expenditure or personal expenses of the assessee) referred to in clause (b), he shall, subject to the provisions of this section, be allowed a deduction of a sum equal to one and one-third times the amount of such expenditure incurred during the previous year: Provided that in respect of the expenditure incurred after the 28th day of February, 1973, but .....

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..... that the expenditure incurred outside India was required to be taken into consideration while granting the benefit as contemplated under sub-section (1)(a) of section 35B. The assessee claimed benefit under section 35B of the Act, on the ground that the amount was spent in India for analysis of the standard of the goods exported. The' Assessing Officer was of the view that a sum of Rs.1,776 paid .....

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..... e of a laboratory certifying that the goods were of a standard and quality as required the goods cannot be exported. As a certificate was necessary, the Tribunal took the view that the same should have been taken into account for working out the relief under section 35B of the Act. The Tribunal expressed an opinion that: "We are of the opinion that this expenditure was necessary for the purpose .....

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..... diture was incurred within the country. Therefore, under some other provision if the assessee is entitled to claim benefit it can get the benefit but so far as weighted deduction as contemplated under section 35B is concerned, we are of the view that in view of the language which is explicitly clear the Tribunal has erred in law in granting the benefit. In view of what we have stated hereinabov .....

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