https://www.taxtmi.com/caselaws?id=15331 Bank interest paid on packing credit obtained in India was held not to qualify for weighted deduction under section 35B of the Income-tax Act, 1961. The Court applied the earlier principle that interest on borrowing for purchase of raw or packing materials is expenditure incurred in the course of manufacture or processing and does not fall within item (viii) of section 35B(1)(b). As the expenditure was not shown to have been incurred outside India, in performance of services rendered outside India, or in connection with or incidental to execution of an export contract, the assessee was denied weighted deduction and the answer was given in favour of the revenue. en-us Thu, 26 Feb 1998 00:00:00 +0530 Tue, 04 Aug 2009 18:17:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=15331 Bank interest paid on packing credit obtained in India was held not to qualify for weighted deduction under section 35B of the Income-tax Act, 1961. The Court applied the earlier principle that interest on borrowing for purchase of raw or packing materials is expenditure incurred in the course of manufacture or processing and does not fall within item (viii) of section 35B(1)(b). As the expenditure was not shown to have been incurred outside India, in performance of services rendered outside India, or in connection with or incidental to execution of an export contract, the assessee was denied weighted deduction and the answer was given in favour of the revenue. Case-Laws Income Tax Thu, 26 Feb 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=15331