9911796707
TMI Blog1979 (1) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed weighted deduction under s. 35B on certain items of expenditure, but on the basis of Audit objection, the ITO reopened the assessment to withdraw the allowance in this connection. The assessee's ground of objection on this point before the AAC was rejected by him following the decision of the Supreme Court in the case of Kastur Bhai Lalbhai(1), according to which the audit Department is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T vs. Dineshchandra Shah Ors(2). We are, however unable to accept the assessee's objection in this connection as there is no dispute that the re-opening of the assessment was done by the ITO on the basis of the audit objection and the Supreme Court decision relied on by the AAC directly supports such reopening. In the circumstances, we uphold the order of the AAC. 3. Coming to the merits, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s noting in this connection that the postage of Rs. 20,000 is the estimated amount relatable to communications outside India, the total postage incurred by the assessee being Rs. 70,352. 4. The next objection of the assessee is to the direction of the AAC to allow weighted deduction on commission payment to foreign agents and not those made to actual importers. According to the assessee, the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es not survive for consideration. 5. The next ground is objection to the disallowance of weighted deduction on salaries paid to staff of Export Department. The AAC has held that the payment is ineligible for weighted deduction as hit by s. 35(1)(b)(iii). The special Bench order of the Tribunal in J. Hemchand Co.'s (3) case supports substantially the claim of the assessee, that is to say a maj ..... X X X X Extracts X X X X X X X X Extracts X X X X
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