1992 (12) TMI 40

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..... ction 256(1) of the Income-tax Act, 1961 (for short "the Act"), the common question referred for our consideration reads thus : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that weighted deduction under section 35B was not available in respect of the expenditure incurred for samples sent abroad ? These references are in respect of the assessme .....

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..... Revenue, the samples were specifically covered by sub-clause (vi) and, therefore, expenditure incurred in respect of the " samples " are outside the purview of sub-clause (i). The assessee contends that in the case of sending samples abroad, such sending would result in advertisement or publicity outside India and, therefore, sub-clause (i) would cover the case. The fact that the samples were s .....

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..... ossible that a particular transaction may admit of more than one description. For example, a manufacturer in India may invite representatives of the traders from abroad and in that regard, expenditure may have to be incurred. These foreign invitees not only would convey information regarding markets in their country, but also would gain their own impressions about the articles manufactured by the .....

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..... absolutely no reason as to why such an act of sending samples should be confined to sub-clause (vi) alone. The Board's Circular No. 27, dated August 16, 1969, was brought to our notice. While discussing the provisions of sections 35B and 35C, the Board observes, inter alia, that to avail of the benefit of these provisions, it is necessary that " the expenditure falls " under " one or more " of .....

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..... d be covered by this Explanation. It is not possible for us to agree with this contention because the expenditure incurred in connection with the samples sent for advertisement, cannot be considered to be in the nature of purchasing and manufacturing expenses. In these circumstances, we disagree with the view expressed by the Appellate Tribunal. In the result, the question referred to us is answ .....

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