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TMI Blog1982 (8) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... 'the Act') in respect of the following expenditure : Sl. No. Assessment year Nature of Amount of expenditure expenditure 1. 1975-76 (a) Salary for staff Rs. 40,131 (b) Membership fee and subscription Rs. 2,511 (c) Designing and printing of folders Rs. 5,168 2. 1976-77 Salary for staff Rs. 27,687 3. 1977-78 Salary for staff Rs. 61,320 7. The ITO observed that the expenses in question were incurred by the assessee in connection with its normal business in India and that there was no evidence to prove that these expenses related to the export business, if any. He, therefore, disallowed the claim of the assessee. 8. On appeal, the Commissioner (Appeals) found that the total turnover of the assessee amounted to Rs. 2.86 crores an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ame in the markets in India. He further pointed out that, after holding that the supply of packing materials to the exporters did not tantamount to 'exports', the Commissioner (Appeals) was not justified in granting weighted deduction to the assessee in respect of the expenditure in question ; more so when there was no material on record to suggest that the members of the staff, in respect of whose salaries weighted deduction was claimed, really looked after any export business of the assessee. He further submitted that the case of Indian Hotels, referred to by the Commissioner (Appeals) in his order was distinguishable and did not cover the present case. According to him, therefore, the assessee was not entitled to weighted deduction under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... city outside India in respect of the goods, services or facilities in which the assessee deals or for obtaining information regarding the markets outside India for such goods, services or facilities, or for furnishing to a person outside India samples of technical information for the promotion of the sale of such goods, etc. That being so, the assessee is not entitled to weighted deduction under sub-clauses (i), (ii) and (vi) of section 35B(1)(b), as claimed by it. Further, there is no material on record to prove that the assessee had entered into any agreement or arrangement with the exporters for exporting their goods in the bags and containers manufactured by it or for pooling the export expenses so as to be entitled to claim weighted de ..... X X X X Extracts X X X X X X X X Extracts X X X X
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