Weighted deduction for foreign travel expenses under section 35B depends on strict statutory conditions, not mere overseas incurrence.

Expenditure on a director's foreign travel for export promotion qualified for weighted deduction only if the statutory conditions under section 35B were met. On the facts stated, there was no material showing that the assessee's sales were substantially diverted for export or that the foreign tour expenses satisfied the required conditions. Allowance of the same amount as ordinary business expenditure under section 37(1) did not by itself establish entitlement to weighted deduction. Incurring the expenditure abroad, or the absence of actual exports, was not decisive; the decisive factor was non-fulfilment of the section 35B conditions, so weighted deduction was denied.

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Issues: Whether expenditure incurred on a director's foreign travel for promotion of exports qualified for weighted deduction under section 35B of the Income-tax Act, 1961.

Analysis: The claim for weighted deduction depended on satisfaction of the statutory conditions under section 35B. On the facts found, there was no material to show that the assessee's sales to another company were substantially diverted for export or that the foreign tour expenditure satisfied the required conditions. The allowance of the same amount as business expenditure under section 37(1) did not establish entitlement to weighted deduction. The mere fact that the expenditure was incurred abroad, or that actual export did not result, was not by itself decisive; the decisive point was the absence of the necessary statutory conditions.

Conclusion: The expenditure did not qualify for weighted deduction under section 35B, and the question was answered in the negative, against the assessee and in favour of the Revenue.

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