9911796707
TMI Blog1986 (6) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... on of this court : 1. Question common to all the assessment years: " Whether, on the facts and in the circumstances of the case, the assessee is entitled to weighted deduction for export markets development allowance in respect of the various expenses which the Tribunal disallowed? " 2. Common question relating to the assessment years 1973-74 and 1974-75 : " Whether, on the facts and in the circumstances of the case, the assessee's claim for deduction in respect of liability for surtax is allowable while computing the total income? " 3. Question relating to the assessment year 1973-74 "Whether, on the facts and in the circumstances of the case, for the purpose of capital computation under section 80J, the actual cost of deprecia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of export sales; (b) Salaries to export staff (c) Ocean freight; (d) Bank charges; (e) Shipping expenses; (f) Postage, telegram and telephone (g) Stationery and printing (h) Staff welfare expenses; (i) Travelling expenses in India relating to export; (j) Marine insurance. The Appellate Assistant Commissioner allowed the claim of the assessee in respect of salaries to export staff, postage, telegram and telephone and stationery and printing and directed the Income-tax Officer to allow weighted deduction on the said items in the proportion as between the total sales and export sales of the assessee. The Appellate Assistant Commissioner rejected the claim of the assessee in respect of the other items. On a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (e) Payment to Carbide Research and Development Organisation; (f) Shipping expenses. The Appellate Assistant Commissioner allowed the assessee's claim for deduction in respect of a portion of salaries to the export staff, the payment made for advice on export potentiality and market condition as also the payment made to the Carbide Research and Development Organisation. The claims of the assessee in respect of the other items were disallowed. On further appeal by the assessee, the Tribunal allowed the assessee's claim in respect of salaries paid to the export staff in full as the same had been paid only to the export staff. For salaries paid to other employees, the Tribunal noted, that no claim was made by the assessee. At the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ices or facilities ; (v) preparation and submission of tenders for the supply or provision outside India of such goods, services or facilities, and activities incidental thereto ; (vi) furnishing to a person outside India samples or technical information for the promotion of the sale of such goods, services or facilities ; (vii) travelling outside India for the promotion of the sale outside India of such goods, services or facilities, including travelling outward from, and return to, India ; (viii) performance of services outside India in connection with, or incidental to, the execution of any contract for the supply outside India of such goods, services or facilities; (ix) such other activities for the promotion of the sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es contemplated under sub-clauses (i), (ii), (v), (vi), (vii) and (ix) should be incurred outside India. In particular, expenses incurred for obtaining information on markets outside India as visualised in sub-clause (ii), or preparation of tenders for the supply of goods as visualised by sub-clause (v), or furnishing of samples or technical information outside India as visualised by sub-clause (vi), could reasonably be incurred in Indian currency in India and, therefore, if such expenses were incurred, they were entitled to qualify for the export markets development allowance under section 35B. On the authority of this decision, the learned advocate for the assessee submitted that the assessee was entitled to allowance under section 35B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the expenses incurred by it on account of staff welfare or for travelling in India was exclusively for obtaining information under sub-clause (ii) or for preparation and submission of tenders for the supply of goods outside India or activities incidental thereto under sub-clause (v) of section 35B(1)(b). The claim of the assessee was a general claim on the basis of apportionment. Particulars were not furnished by the assessee to establish that the staff for whose welfare the expenditure was incurred were deputed exclusively for the aforesaid purpose of obtaining information or for preparation and submission of tenders. Similar particulars in respect of travelling expenses incurred were also not furnished. Unless such facts were brought ..... X X X X Extracts X X X X X X X X Extracts X X X X
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