9911796707
TMI Blog1986 (1) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... qualify for the weighted deduction under section 35B of the Income-tax Act, 1961. The assessee is a private limited company and it has been found as fact that 89.41% of its total sales represent export sales. For the assessment year 1973-74, the assessee claimed, inter alia, deduction under section 35B in respect of repairs and renewals (Rs. 7,141), directors' remuneration (Rs. 28,102), electricity and power (Rs. 8,092) and expenditure on foreign customers (Rs. 3,201). The Appellate Tribunal has held the assessee to be entitled to deduction under section 35B in respect of 75% of the first three items of expenditure and 100% of the last item. In respect of repairs and renewals, it pointed out that weighted deduction had already been allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee had not established the deductibility of these items under various specific clauses set out in section 35B(2) and, therefore, was not entitled to weighted deduction. So far as the first of these points is concerned, the language of section 35B itself shows that, except for expenditure falling under clause (iii), the expenditure incurred under the other clauses need not be necessarily in India; all that is necessary is that the expenditure should promote development of exports in the various aspects referred to in those clauses. This is clear not only from the language of the section but also from the decision of the Madras High Court in CIT v. Southern Sea Foods P. Ltd. [1983] 140 ITR 855 and of this court in CIT v. Jay En ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure as attributable to export sales to the extent to which they have permitted the weighted deduction. We, therefore, do not consider that any question of law arises out of this aspect of the order. Counsel for the Department submitted, relying upon a decision of the Allahabad High Court in CIT v. Vindeshwari Trading Corporation [1978] 113 ITR 791, that even though a question may have been decided by this court earlier, it can be referred under section 256(1)/(2) so long as there is no authoritative pronouncement of the Supreme Court. In this case, the conclusion which the Tribunal had arrived at follows directly from the language used in the statutory provision and there is no ambiguity or difficulty of interpretation. Apart from the dec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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