1997 (8) TMI 51

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..... lowing question of law has been referred to this court for its opinion by the Income-tax Appellate Tribunal, Amritsar (hereinafter referred to as "the Tribunal"), under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") : "Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in allowing weighted deduction under section 35B in res .....

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..... s. The Income-tax Officer did not allow relief in respect of the following expenses under section 35B of the Act : "(i) Rs. 13,000 paid as salary and bonus to Shri Raj Kumar and Shri Sohan Lal. (ii) Rs. 26,270 paid as salary and bonus to other employees. (iii) Rs. 7,895 telex expenses. (iv) Rs. 1,820 expenses on stationery." The assessee, aggrieved against the aforesaid order of the Inco .....

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..... and telex shall also qualify for weighted deduction. The Commissioner of Income-tax (Appeals) considered 50 per cent. of the expenditure incurred under these two heads for the purposes of allowing weighted deduction. The Revenue filed a further appeal before the Tribunal which was rejected. The order of the Commissioner of Income-tax (Appeals) was affirmed. Thereafter, the Revenue filed a petit .....

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..... s, and (iv) Expenses on stationery. The Tribunal, after satisfying itself that the expenditure claimed was in respect of those staff who were exclusively looking after the export business, allowed weighted deduction on 75 per cent. of the expenditure, while 50 per cent. of the expenditure on salary and bonus paid to other staff members was given the advantage of extra deduction under section 3 .....

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..... ould also qualify for weighted deduction as expenses incurred on stationery and mode of communication by telex would be directly relatable to the export promotion, thus, qualifying them for weighted deduction under section 35B of the Act. In this regard, reference may be made to CIT v. Indian Aluminium Cables Ltd. (No. 2) [1990] 184 ITR 587 (Delhi), Continental Device India Ltd.'s case [1992] 198 .....

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