1988 (12) TMI 76

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..... ssessment year involved is 1972-73 for which the relevant year of account is the calendar year 1971. The assessee claimed that it held a conference at Calcutta for promotion of export styled "Export for 1971 ". For this, the assessee incurred an expenditure of Rs. 2,60,000 for visiting personnel from foreign countries in connection with the conference. In the course of the assessment proceedings, the assessee claimed that it was entitled to weighted deduction in respect of expenses incurred under section 35B of the Income-tax Act, 1961, ("the Act"). The Income-tax Officer asked for particulars of the conference that was held and came to the conclusion that it was in the nature of a routine programme and he did not accept the assessee's cont .....

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..... ad to be incurred wholly and exclusively on the objects mentioned in sub-clauses (i) to (viii) of sub-section (1)(b) of the section. Sub-clause (ix) of subsection (1)(a) is a residual clause which provides for weighted deduction of expenditure incurred wholly and exclusively on "such other activities for the promotion of the sale outside India of such goods, services or facilities as may be prescribed.". Mr. Moitra, appearing for the Revenue, has not seriously disputed the proposition that weighted deduction cannot be refused merely because expenditure was incurred in India. Among the various clauses under subsection (1)(b) of section 35B, only sub-clause (iii) specifically provides that the expenditure that qualified for weighted deduct .....

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..... i) to (viii) are activities for the promotion of the sale outside India. The language employed in sub-clause (ix) "such other activities for the promotion of the sale outside India. . . " clearly implies that the activities mentioned in sub-clauses (i) to (viii) are also activities for the purpose of promotion of sale outside India. In other words, apart from the activities which may be prescribed under sub-clause (ix), the other activities specifically mentioned in sub-clauses (i) to (viii) are also for export promotion. The activities mentioned in sub-clauses (i) to (viii) do not cease to be activities for the promotion of the sale outside India of such goods, services or facilities because the expression "activities for promotion of sale .....

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