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TMI Blog1997 (12) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... d to weighted deduction under section 35B in respect of (i) allocation fees paid to ICMF, Bombay, (ii) inspection fees paid to Textile Committee, (iii) council charges paid to Texprocil, Bombay, and (iv) fees paid to Texprocil, Bombay ?" For the assessment year 1971-72 : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessee was entitled to weighted deduction under section 35B in respect of (i) inspection fee paid to Indian Cotton Mills Federation, Bombay, (ii) allocation fees paid to Indian Cotton Mills Ltd., and (iii) council charges, etc. ?" For the assessment year 1972-73 : "Whether, on the facts and in the circumstances of the case, the Appellate Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espect of following items : (i) Inspection fee paid to Indian Cotton Mills Federation, 1,61,223 Bombay (ii) Allocation fees paid to Indian Cotton Mills Federation (iii) Council charges, etc. 1972-73 : Inspection fees paid to textile Committee 1,11,509 1974-75 : In respect of export promotion fee paid to I.C.M.F. 3,60,016 We are not concerned with 1975-76. The case of the assessee in the assessment proceedings for the four assessment years was that the payments were monetary in character and were made for the export of textile goods from India. The Assessing Officer rejected the claim of the assessee for weighted deduction under section 35B of the Act on the ground that the expenditure claimed would not fall under any on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered the arguments of Mr. C. V. Rajan, learned counsel for the Revenue, as well as Mr. P. P. S. Janarthana Raja, learned counsel for the assessee, and we are of the view that it is not necessary to set out the arguments of learned counsel in detail. The question that arose before the Tribunal was, whether the payment made to Indian Cotton Mills Federation, Bombay, and the payments made by way of council charges to Texprocils and the cess paid for the said assessment years would qualify for weighted deduction under section 35B of the Income-tax Act. The Tribunal considered the question with reference to payments made to Textile Export Promotion Council, but has not considered the question with reference to the nature of the duties and th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of the law that the Tribunal cannot allow weighted deduction without any specific finding that the expenditure would fall under one or more than the sub-clauses referred to section 35B of the Act. Since the Tribunal has not decided the relevant question necessary for allowing the assessee's claim for weighted deduction, we are not providing answers to the various questions of law referred for various assessment years since the Tribunal has not decided the necessary and factual basis and decide the issues arising out of the question referred to us. But, the Tribunal, as stated earlier, is directed to consider the questions afresh in the light of the decision of the Supreme Court cited supra, and examine the nature of the expenditure and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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