1999 (10) TMI 22

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..... orrect in allowing weighted deduction under section 35B on the expenditure incurred on salaries, stationery, rent and postage ?" We have heard Sri Shambhu Chopra, learned counsel for the Commissioner, and Sri P. K. Misra, advocate, holding brief for Sri Bharat Ji Agarwal, learned counsel for the respondent. The assessee is an exporter of brassware and claimed export markets development allowance under section 35B of the Income-tax Act, 1961, in respect of the expenditure to be detailed hereafter. The expenditure in respect of which such allowances, popularly known as weighted deduction is allowable, is mentioned under section 35B(1)(b) as under : "(b) The expenditure referred to in clause (a) is that incurred wholly and exclusively on .....

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..... lities as may be prescribed." The Tribunal's order is brief and is as under : "4. The only other ground relates to the claim of the assessee for weighted deduction under section 35B of the Income-tax Act. The assessee had claimed weighted deduction on the following amounts : Rs. (1) Miscellaneous expenses 18,551 (2) Salaries 58,158 (3) Foreign travel expenses 25,972 (4) Stationery 7,762 (5) Rent 4,300 (6) Postage 14,727 (7) Interest 61,812 (8) Export promotion commission 54,138 5. The scope of section 35B and the extent to which weighted deduction can be given under that section in respect of various items of expenditure was considered by a Special Bench of this Tribunal in ITA Nos. 3255 and 3330/Bom of 1976-77 by it .....

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..... -------------------------------------------------------------------- Head of expenditure Amount (Rs.) Weighted deduction --------------------------------------------------------------------------------------------------------------------------------------------------- 50 per cent. having regard to the fact 1. Salaries 58,158 that it is not clear that the salaries shown has not been shown to be only salaries of the export promotion staff. 2. Stationery 7,762 50 per cent. 3. Rent 4,300 50 per cent. 4. Postage 14,727 75 per cent. --------------------------------------------------------------------------------------------------------------------------------------------------- We are of the view that the assessee is not entitle .....

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