9911796707
TMI Blog1988 (5) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... him. The assessing authority referred to the past practice relating to the years 1979-80 and 1980-81 and treated 1/3rd of the samples as part of the closing stock. According to assessee, 893.300 kg. of yarn had been consumed by the assessee for samples, 1/3rd therefore came to 297.08 kg/. At the rate of Rs. 140 per Kg. a sum of Rs. 41,692 was added on account of value of suppressed closing stock. On appeal, the CIT(A) reduced this figure by Rs. 8737. The assessee is still dissatisfied and has challenged the maintenance of this addition in his own appeal and in the cross objection against the Departmental appeal in which the Department has objected to the relief of Rs. 8737 granted by the CIT(A) in this behalf. 3. After hearing the repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Quality Control 58,098 -do- 45,000 3. Advertisement 51,167 -do- 30,000 4. MFHC Commission 10,338 -do- . 5. WWEP Commission 68,738 -do- . 6. Foreign tour 1,45,725 Allowed . 7. Export Promotion 58,915 Not allowed 25,000 8. Subscription 12,050 -do- 12,050 9. Free samples 2,648 -do- 2,646 The Department has agitated against the grant of weighted deduction under s. 35B in respect of items wherein the same has been allowed by the CIT(A) while the assessee has agitated and contended that the entire claim made by the assessee should h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in writing made by the Central Govt. or a foreign party to whom such goods, service of facilities are likely to be sold or provided by the assessee; (b) maintenance outside India of a warehouse for the promotion of the said outside India of such goods; (c) maintenance of a Laboratory or the facilities for quality control, or inspection of such gods; Provided that in a case where only part of the sale is made outside Indian, the amount of expenditure incurred on the maintenance of such Laboratory or other facilities which shall qualify for deduction under cl.(a) of sub-s. (1) of s. 35B shall not exceed the amount which bears the same proportion as the value of the turnover in respect of such exports bears to the turnover of the bus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it becomes part of the sub-cl. (ix) of cl.(b) of sub s. (1) s. 35B and, therefore, the assessee's claim for weighted deduction in terms of r. 6AA deserves to assessment examined in respect of any assessment which would be pending on the date when the said rule was promulgated. The CIT(A) actually applied the rule and allowed weighted deduction to the assessee on some items. Since this is in accordance with the view taken by the Tribunal, we decline to interfere in the Departmental ground raised in this behalf. 5. In its own appeal, the assessee has further claimed weighted deduction in respect of items on which the same has not been allowed or only particularly allowed by the CIT(A). One such item is expenses incurred on sample designi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epartmental appeal in this behalf fails and is here by rejected. 7. In the assessee's appeal there is another ground relating to disallowance of 1/5th of the vehicles expenses and depreciation on cars. To our mind, personal use of the cars is not ruled out but on a perusal of the order of the assessing authority it shows that there was probably more than one car maintained by the assessee because total amount of expenses is Rs. 34,656, which could not relate to one vehicle alone. Considering the fact that the assessee had more than one vehicle, it appears that the business requirements of the assessee must be quite large. We, therefore, restrict the disallowance to 1/8th of the total expenses. 8. In the result the departmental appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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