9911796707
TMI Blog1987 (6) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Income-tax Officer in the course of the assessment proceedings was the claim of weighted deduction under section 35B on expenses relating to the activities enumerated in the various sub-clauses of clause (b) of sub-section (1) of section 35B of the Income-tax Act, 1961. This was not accepted by the Income-tax Officer on the ground that the assessee's business was not that of an exporter and, therefore, the provisions of section 35B cannot be invoked by the assessee to claim weighted deduction on expenses, which, according to it, were on activities enumerated in the various sub-clauses of clause (b) of sub-section (1) of section 35B. When the matter went up in appeal, the Commissioner of Income-tax (Appeals) held that the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order of the Appellate Tribunal in the case of ITO v. Ampi Agencies (P.) Ltd. [IT Appeal No. 1768 (Bom.) of 1984]. We were taken through the order in order to point out that Ampi Agencies (P.) Ltd. had taken over the business of the assessee-firm and were carrying on the identical business. Shri Sonde pointed out that in this case where the business was identical, the Appellate Tribunal by order dated 24-9-1986 held that the claim of weighted deduction under section 35B was admissible. He then referred to another order of the Appellate Tribunal in the case of Indian Hotels Co. Ltd. v. ITO [IT Appeal No. 467 (Bom.) of 1975-76] where also even though there was no export at all, the claim of weighted deduction under section 35B was held to b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 35B nowhere even whisper that the weighted deduction under this section shall only be admissible to those persons who have made actual exports outside India. The criterion for grant of weighted deduction under section 35B is the expenses incurred wholly and exclusively on activities enumerated in the various sub-clauses of clause (b) of sub-section (1) of section 35B. It will also be necessary here to point out that clause (1A) of section 35B inserted by the Finance Act, 1978 relating to expenditure incurred after the 31st day of March, 1978 and omitted by the Finance Act, 1979 with effect from 1-4-1980 will not apply to the assessment years 1977-78 and 1978-79 under consideration in the present appeals for which the relevant previou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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