9911796707
TMI Blog1993 (9) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... tually for the grant of permission to the assessee to sell its goods to countries other than the countries in which it was required to sell in the agreement with the German company ? 2. Rs. 76,604 being expenditure on export inspection charges ? 3. Rs. 1,05,703 being the export expenses incurred on loading and unloading charges ?" As regards the claim for weighted deduction in respect of expenditure referred to in item No. 1 of the above question, we find that a similar controversy came to be considered by this court in the assessee's own case in respect of an earlier assessment year in Dr. Beck and Co. (India) Ltd. v. CIT [1993] 202 ITR 922. The payment in that case was also made to Dr. Beck and Co. in respect of similar services in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal nor do we find any reference thereto or the relevant facts in that connection in the statement of the case. Learned counsel for the assessee wants this court either to take judicial notice of those facts or to remand the case to the Tribunal for reconsideration of the matter by bringing them on record. We do not find any force in the above submission. We, therefore, reject the same and, following the decision of this court in the assessee's own case referred to above, hold that the Tribunal was justified in rejecting the claim of the assessee for weighted deduction under section 35B in respect of amounts paid to Dr. Beck and Co., Germany, for grant of permission to the assessee for sale of the goods to countries other than coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncurred wholly and exclusively "on furnishing to a person outside India technical information for the promotion of the sale of such goods" within the meaning of sub-clause (vi). A close reading of sub-clause (vi) clearly goes to show that it refers to expenditure on furnishing "to a person outside India" samples or technical information for the promotion of sale of such goods, etc., meaning thereby sales promotion expenditure restricted to furnishing of samples and technical information. Export inspection charges are paid at the time of the export of the goods for inspection thereof by the appropriate authorities which is a condition precedent for export. In fact and in reality it is an expenditure incurred wholly and exclusively on the des ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of such goods within the meaning of sub-clause (vi) of section 35B(1)(b) of the Act on the ground that such a certificate was a necessary requirement for the export of the goods. We have carefully considered the above decision. However, in view of the foregoing discussion we find it difficult to accept the same. In our opinion, "any expenditure incurred in India" for the purpose of export squarely falls in the exclusion contained in sub-clause (iii) of section 35B(1)(b) of the Act as it is an expenditure in connection with "the supply outside India of such goods". We find it extremely difficult to hold it to be an expenditure on furnishing to a person technical information for the promotion of the sale of such goods. Neither the inspect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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