1983 (9) TMI 123 - AT - Income Tax

Tribunal Grants Relief on Weighted Deduction & Section 80J Appeals

The Tribunal partly allowed both appeals, granting relief on the issues of weighted deduction and section 80J for the assessment years 1976-77 and ... - Issues:1. Weighted deduction for commission2. Weighted deduction for exhibition expenses, subscriptions, membership, and samples3. Weighted deduction for various items like printing, stationery, postage, insurance, rent, salary, bonus, telephone expenses, and service charges4. Claim of relief under section 80JAnalysis:1. The judgment involved common issues related to weighted deduction and relief under section 80J for the assessment years 1976-77 and 1977-78. The first issue was the claim of weighted deduction for commission amounts that were rejected by the assessing authorities based on the payment location. However, following a Special Bench decision, the Tribunal allowed the weighted deduction for the commission amounts for both years.2. The second issue pertained to the claim of weighted deduction for exhibition expenses, subscriptions, membership, and samples. While the assessing officer disallowed these expenses, the Appellate Authority allowed 50% of the expenses. The Tribunal, relying on the Special Bench decision, accepted the assessee's contention and allowed the total amount of such expenses based on specific findings and principles laid down in the decision.3. The third issue revolved around the assessee's claim for weighted deduction concerning various items like printing, stationery, postage, insurance, rent, salary, bonus, telephone expenses, and service charges. Both parties relied on the Special Bench decision and other Tribunal decisions. The Tribunal allowed weighted deduction for certain expenses related to export liaison work but rejected claims for insurance while directing specific percentages of deductions for other expenses based on export percentages and the Special Bench decision.4. The final issue was the claim of relief under section 80J, which was denied by the lower authorities. The Tribunal examined the facts and previous assessments of a related entity to determine the eligibility for the relief. After considering the submissions and relevant documents, the Tribunal reversed the lower authorities' decisions, accepting the assessee's contention regarding the application of section 80J relief and the misinterpretation of capital allocation by the assessing officer.In conclusion, the Tribunal partly allowed both appeals, granting relief on the issues of weighted deduction and section 80J based on the analysis and application of relevant legal principles and precedents.