9911796707
TMI Blog1988 (12) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... 35B in respect of Fumigation charges of Rs. 62,720 and Export Inspection Certificate charges of Rs. 44,687. In this regard, it was the claim of the assessee that the above expenses qualify for deduction in terms of r. 6AA of the Rules read with s. 35B(1)(b)(ix) of the IT Act. The learned CIT(A), however, held that the r. 6AA was introduced w.e.f 1st Aug., 1981 by the IT (8th Amendment) Rules, 1981 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned counsel of the assessee. In so far as the applicability of r. 6AA is concerned, the Tribunal fully considered this issue in the case of ITO vs. Satya Industrial Corporation (1987) 28 TTJ Del 277 (TM) : (1987) 21 ITD 122 (Del) (TM). In that case, the learned Third Member, following the decision of the Special Bench in the case of Rajapalayam Mills Ltd. vs. ITO (1986) 18 ITD 114 (SB) and in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... angement, according to the learned counsel of the assessee, is tantamount to maintenance of laboratory or other facilities for quality control as contemplated under r. 6AA of the IT Rules. His contention is fully supported by the decision of the Allahabad Bench of the Tribunal in the case of Kothari Carpets (1984) 9 ITD 357. In that case, the Tribunal considered similar provision in sub-cl. (iv) o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntained an agency outside India in terms of sub-cl. (iv) of s. 35B(1)(b) and was entitled to relief in terms of that section on the commission paid to the foreign firm. Applying the principle determined by the Tribunal, it can be held that the assessee in this case is maintaining the same relation which entitles the assessee to the benefit as contemplated under r. 6AA(c) of the IT Rules as the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
