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TMI Blog1983 (9) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... brokerage received during the year amounted to Rs. 6,79,644. 3. The assessee claimed relief u/s 35B of the Act on a sum of Rs. 6,30,522 being expenses incurred to earn the aforesaid brokerage income. In its letter dt. 12th Nov., 1976 the assessee explained before the ITO that its business was to keep abrcast of the day-to-day, hour to hour, changes in the world prices through out the world. Hence, the assessee had to obtain information regarding the ruling market price in all foreign markets as well as the potential buyers of the agricultural produce of India mainly oil seeds, cotton seeds and oil cakes. Hence, it was urged that the case of the assessee came u/s 35B(b)(ii) of the Act. Consequently, the weighted deduction envisaged u/s 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s or services need not be sold outside India for getting relief u/s 35B. This decision of the Tribunal has now become final as it has received approval of the Supreme Court. The written submission of the assessee before the CIT(A) were given in its letter dt. 24th Dec., 1981. The CIT(A) held that the assessee was indeed entitled to the relief u/s 35B, as the expenditure under consideration was incurred for obtaining information as envisaged u/s 35B(b)(ii). Having decided in principle that the assessee was entitled to relief u/s 35B, he scrutinised the claim of the assessee item by item. Applying the principles laid down by the Tribunal in the case of J. Hemchand Co. 1 SOT 150, he held that only the sum of Rs. 2,53,721 qualifies for relief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ich explained the above position. Then he referred to the order dt. 30th Sep., 1976 of the Tribunal in the case of the Indian Hotels Co. Ltd., wherein it has been held that it was not necessary to export in order to be entitled to the relief u/s 35B. He also pointed out that special leave petition against the said order has also been rejected by the Supreme Court on 14th Sep., 1979 vide page 29 of the compilation filed by the assessee. Then he referred to the case of Orient Charterers whose business was also to Act as Freight Brokers and Shipping Agents. In their order dt.11th June, 1975 for the asst. yrs. 1970-71 and 1971-72, the Tribunal considered the arguments similar to those raised in the case before us now and arrived at the conclusi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te correct in his decision and so we uphold the same. We also find that the amount on which he has allowed relief his been correctly worked out in accordance with the principles laid down by the Special Bench of the Tribunal in the case of J. Hemchand Co. We, therefore, do not see any reason to interfere with the same. 11. The only other ground in this appeal is that the CIT(A) erred in allowing 1/3rd of depreciation on the motor car ignoring the provisions of s. 38(2) of the Act. Shri A. Prasad urged before us that if a motor car is not wholly used for the assessee's business and a portion of the expenses incurred on the maintenance of the car has been disallowed on that ground, then a corresponding proportion of the depreciation shou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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