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TMI Blog1973 (11) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... ? The following facts are necessary for a proper appreciation of the above question. The assessee is a firm consisting of four partners, viz. K. E. Kesavan, K. K. Raghavan and their wives, K. Kunjamma and K. A. Kamalam, the former two being entitled to 30% of the profits or losses and the latter two, 20%. The firm carries on the business in export of sea foods. It filed a return on June 30, 1969, disclosing an income of Rs. 1,80,462 for the assessment year 1969-70. The firm claimed deduction of Rs. 46,973.85 under section 35B of the Income-tax Act, 1961 (briefly stated " the Act "), the amount being one-third of Rs. 1,40,923.97 alleged to have been expended by way of commission to foreign agents, insurance premium paid outside India and o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter. The Tribunal held that only expenses incurred for insurance of goods while in transit was excluded under the section and that expenses incurred for insurance of goods after landing was not so excluded. The contention that expenses incurred for carriage of goods after landing at the port of destination to the places where they were sold and delivered also qualified for weighted deduction, was rejected. The Tribunal held that when such goods were carried from the port of destination to other places where they were ultimately sold and delivered, that would still be carriage of the assessee's goods to destinations outside India and, therefore, expenses incurred therefor would not qualify for weighted deduction. So also, expenses incurr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... side India of such goods, services or facilities, not being expenditure incurred in India in connection therewith or expenditure (wherever incurred) on the carriage of such goods to their destination outside India or on the insurance of such goods while in transit." From the above, it follows that claim for weighted deduction in respect of expenditure incurred can be claimed only if the following conditions are satisfied : (1) it should not have been incurred in India; (2) it should not be expenditure incurred on the carriage of goods to destinations outside India; and (3) it should not be expenditure on the insurance of such goods while in transit. It, therefore, follows that expenditure incurred on the carriage of goods to desti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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