9911796707
TMI Blog1985 (5) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... ting and stationery etc. 2. From the perusal of the orders of the two lower authorities, we find that the additional grounds raised in respect of expenses which were also dealt with by them. The only difference was that in respect of ECGC, the assessee's claim was admitted only for 50 per cent whereas in the additional ground in CO of the assesses its claim was 100 per cent and in respect of salary and other office expenses, it was allowed at lesser percentage against the assessee's claim at 75 per cent in respect of salary and 50 per cent in respect of other expenses, as per Special Bench decision. Both these grounds are admitted. 3. For the sake of convenience, we first take up the additional grounds. We find that on merit, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed this particular item specifically or in particular. Therefore, the assessee's claim in respect of this item deserves to be allowed. He also made available to us Bombay Bench decision dt. 26th May, 1982 in I. T. A. Nos. 393, etc. He submitted that in view of Godawari Devi Saraf's decision, the only judgment on credit interest is that of M. P. High Court and this must hold the filed especially when Special Bench has not dealt with it specifically or in particular. 5. The learned Senior Departmental Representative Mr. R. K. Bali, on the other hand, submitted that so far no one's claim of weighted deduction in respect of packing items credit has been allowed by this Bench. Even in the assessee's case in the past, though the amount was in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntract for supply of goods to the foreign parties is shown and, therefore, these findings of fact clearly indicate that this expenditure was incurred in connection with the execution of any contract for the supply outside India. It is significant that even incidental expenditure will be covered under this clause...." We have also got available for our assistance Bombay bench decision in the case of Aaydee Corporation in I. T. A. Nos. 393 etc., which is placed on the assessee's compilation. The learned Members in the said case have observed that: ".....The packing credit interest could be a good barometer in judging it. So, we come to the finding that the packing credit interest is eligible for the deduction under s. 35B." This is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel for the assessee argued that s. 80J relief is to be allowed for five years. The unit was started on 1st April, 1975. Therefore, first assessment year would be 1976-77 and it is simple that 1980-81, which is under consideration, is fifth assessment year. In this regard, the ld. Sr. Departmental Representative submitted that in the CIT (A) order, 1979-76 has been mentioned as the first assessment year. When we go through the relevant paragraph in the CIT (A) order, which is No. 9, we find, it is mentioned therein: ".....Since in this case admittedly the initial asst. yr. 1975-76 commenced on 1st April, 1975, the five assessment year in which the relief would be admissible would end with the asst. yr. 1979-80 commencing on 1st April, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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