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TMI Blog1988 (12) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts and in the circumstances of the case, the Tribunal was right in allowing relief under section 80J of the Income-tax Act, 1961, in respect of the lamination unit set up by the assessee ? " The assessee-company carries on business of manufacture of automobile spare parts. Its sales include exports. During the previous year relevant to the assessment year 1970-71, its exports worked out to about Rs. 16 lakhs. Exports were made through one Shri Pritam Singh Bedi of Messrs. Export Trading Company, Kurla, Bombay, with whom an agreement was entered into. The assessee claimed weighted deduction under section 35B on expenditure which included payment of commission of Rs. 1,691 to the aforesaid Shri Pritam Singh Bedi. The Income-tax Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on this item by the Appellate Assistant Commissioner. As regards the Department's appeal against the grant of relief under section 80J to the assessee, the Tribunal observed that in the case of CIT v. Indian Aluminium Co. Ltd. [1973] 88 ITR 257, the Calcutta High Court itself had taken a different view, that the facts of the assessee's case were closer to the case of Indian Aluminium Co. Ltd. [1973] 88 ITR 257 and that, therefore, the assessee was rightly allowed relief under section 80J. Shri Jetley, learned counsel for the Department, took us through the provisions of section 35B as were applicable during the material period. He reiterated that at best the expenditure in the form of commission paid to Shri Bedi would pertain to the dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ub-clauses (ii), (vi) and (vii) if not also under sub-clauses (v) and (viii). As regards sub-clause (iii), the distribution, supply or provision outside India of goods refer to, in our view, post-contract services and not prior services. Therefore, sub-clause (iii) is not applicable in this case. The Kerala High Court in Ravindranathan Nair's case [1988] 170 ITR 411 has merely followed its decision in Tharian and Sons' case [1987] 166 ITR 607. We were taken through that decision. We find that the decision is not really against the assessee. What has been held in that case is that the material question for the purpose of relief under section 35B is not where payment is made but where services are rendered. Since, in that case, the Tribunal h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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