1991 (12) TMI 5

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..... r under reference is 1977-78, the year of account being Samvat year 2032. In the course of assessment for the assessment year under reference, the assessee claimed export markets development allowance under section 35B of the Income-tax Act, 1961 ("the Act", for short), in respect of the following items of expenditure, namely : (1) expenditure of Rs. 50,000 incurred for packing material ; and (2 .....

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..... ighted deduction under section 35B of the Act. The Revenue, being aggrieved by the order of the Commissioner, carried the matter in appeal before the Income-tax Appellate Tribunal ("the Tribunal", for short). The Tribunal held that the Commissioner was wrong in holding that packing material expenses of Rs. 50,000 were eligible for allowance under section 35B. It further held that expenditure of Rs .....

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..... essee had incurred for packing charges, if at all, would be covered by clause (iii) of section 35B(1)(b). As held by the Commissioner, the said expenditure was incurred for packing of goods which were exported. It is, therefore, obvious that the expenditure was incurred before the goods were exported. The expenditure, therefore, must have been incurred in India. Expenditure incurred in India in co .....

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