1993 (10) TMI 80

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..... d to weighted deduction under section 35B of the Income-tax Act, 1961, in respect of the expenditure of Rs. 3,95,625 incurred by it on payment of salaries and allowances to its staff engaged in the installation of cement plant in Kuwait? The controversy in this case pertains to assessment year 1971-72. The assessee-company carries on the business of manufacture and sale of cement. It also acts as miners, metallurgists, builders, contractors, engineers, merchants, importers and exporters and deals in property of all kinds. In the course of its business, the assessee also undertakes investigations to discover places where cement can be profitably made and is engaged in prospecting and research work to obtain prospecting licences. During the .....

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..... with the export of any goods and services out of India and, as such, it does not fall within the ambit of section 35B of the Act. We have carefully considered the above submission. We, however, find it difficult to accept the same in view of sub-clause (v) of clause (b) of section 35B(1) of the Act. Under section 35B of the Act, the assessees specified therein are entitled to weighted deduction in the computation of their taxable income of an amount equal to one and one-third times the amount of the expenditure incurred by them wholly and exclusively on any of the activities specified in the various sub-clauses of clause (b) thereof. Sub-clause (v) of clause (b), which is relevant for our present purpose, is In the following terms: (v) prep .....

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..... justified in holding that the assessee is entitled to weighted deduction under section 35B of the Income-tax Act, 1961, in respect of the expenditure of Rs. 3,95,625 incurred by it on payment of salaries and allowances to its staff engaged in submission of tenders, preparation and sumission of plans in respect of setting up of cement factory in Kuwait on turnkey basis and rendering incidental services in connection there with?" And in view of the foregoing discussion and having regard to the facts of the case set put above, we answer the same in the affirmative, that is, in favour of the assessee and against the Revenue. Under the facts and circumstances of the case, we make no order Rs to costs.
Case laws, Decisions, Judgements, Ord .....

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