9911796707
TMI Blog1983 (3) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... e value on exports' and weighted deduction on Rs. 3,58,633 paid as 'air and sea freight, railway and truck freight and insurance charges of goods', the assessee came forward with an additional ground in respect of : " Expenses of Rs. 3,10,902 out of total of expenses of Rs. 8,82,832 in proportion to the export sales of 91 per cent." and prayed that weighted deduction on that too may be allowed. While addressing the Beach on the admission of additional ground, the learned counsel for the assessee, Mr. O.P. Bansal, submitted that powers of the Income-tax Appellate Tribunal are very wide. He was, however, fair enough to admit that claim in respect of the said proportionate expenses was neither made before the ITO nor before the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t going into details or obtaining further information on the issue. The first case on which reliance was placed by the learned counsel for the assessee was the Gujarat High Court decision in Sayaji Mills Ltd.'s case in which it was held by their Lordships that : ". . . All questions, whether of law or of fact, which relate to the assessment of the assessee may ordinarily be allowed to be raised by him in appeal even though not raised before the Income-tax Officer, if grant of relief would be available on the determination of such questions . . ." In this case, the Tribunal had admitted the claim of the assessee in the interest of substantial justice and this action of the Tribunal had found approval of their Lordships of the Gujarat Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ient material on record to allow such a claim. " In the instant case, on the basis of facts alone there is no sufficient material on record to warrant the admission of additional ground. On top of all these, we, sitting at Chandigarh, have direct finding of the Punjab and Haryana High Court in Hansa Agencies (P.) Ltd.'s case available for our guidance in which after additional claim in respect of weighted deduction under section 35B was not admitted by the AAC, the assessee carried the matter before the Tribunal and the Tribunal not only rejected the contention raised by the assessee while confirming the action of the AAC in rejecting the additional claim but even declined to refer the question at the instance of the assessee under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... against the assessee. 4. After taking into consideration the rival submissions and looking to the facts, when we find it as a fact that Rs. 1,247 were not spent on business promotion but on customers for refreshment, etc., and Rs. 477 being expenses on foreign visitors at Delhi branch, the same cannot be taken out of the net of 'entertainment expenses'. The contention of the assessee in respect of both the items is covered by the Punjab and Haryana High Court decision in the case of CIT v. Gheru Lal Bal Chand [1978] 111 ITR 134, on which reliance is placed by the Commissioner (Appeals) while rejecting the assessee's claim in respect of Rs. 1,247. Even if there is no discussion available in the Commissioner (Appeals)'s order regarding pet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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