TaxTMI 
TaxTMI 
1989 (1) TMI 162
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....T Act, 1961. The learned counsel for the assessee contended that reimbursement of medical expenses and insurance premium could not be held as perquisite for the purposes of s. 40(c) as held by the Hon'ble Delhi High Court in CIT vs. Bharat Ram Charat Ram P. Ltd. (1985) 47 CTR (Del) 5 : (1986) 157 ITR 199 (Del), and Instalment Supply Pvt. Ltd., vs. CIT (1984) 41 CTR (Del) 334 : (1984) 149 ITR 457 (Del). He also referred to a Circular of CBDT being Circular No. 376 dt., 6th Jan., 1984 reported in (1984) 38 CTR (TLT) 18 : (1984) 146 ITR (St) 62, stating that reimbursement of medical expenses by anemployer to an employee will be taxable only in excess of Rs. 5,000 per annum. He pointed out that in the case of the assessee the amount was only Rs....
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....elegates Rs. 25,950 10. Foreign Delegation expenses Rs. 18,436 6. The assessee claimed weighted deduction under s. 35 of the Act on expenditure aggregating to Rs. 9,98,938 as detained below: (i) Expenditure on foreign travelling for export sales Rs. 2,84,448 (ii) Expenditure on foreign exhibitions Rs. 59,400 (iii) Commission to agents in foreign countries for obtaining export orders Rs. 27,428 (iv) Expenditure on advertisement and publicity outsideIndia Rs. 56,178 (v) Commission to Indian Agents Rs. 11,956 (vi) Fright and forwarding expenses Rs. 2,67,349 (vii) Insurance charges for consignment exported Rs. 27,345 (viii) Salaries of staff engaged in export de....
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....ot allow the weighted deduction under s. 35B in respect of the following items: (a) Commission to Agents (Indian) . Rs. 11,956 (b) Freight & Forwarding . Rs. 2,67,349 (c) Insurance charges . Rs. 27,345 (d) Salary to staff exclusively engaged in Export Department . Rs. 58,335 (e) Rent . Rs. 6,811 (f) Bank charges . Rs. 3,646 (g) Inspection charges fee . Rs. 10,409 (h) Export Department execution expenses : . . . (i) Telephone charges 63,149 . . (ii) Conveyance 10,572 . . (iii) Stationery 8,775 . . (iv) Tender Purchases 954 . . (v) Electric expenses 317 . . (vi) Car expenses 1,920....
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....d wrongly been allowed by the ITO. He, therefore, withdrew this allowance also. Consequently, ground No. 3 of the appeal is against the withdrawal of weighted deduction allowed by the ITO. Ground No. 4 relates to the expenditure where the claim has not been admitted either by the ITO or by the CIT(A). 9. We have heard the parties. It may be pointed out that commission paid to Indian agents has been held to be entitled to weighted deduction under s. 35B by the Special Bench of the Tribunal in the case of J.Hem Chand and Co., vs Second ITO (1982) 1 SOT 150 (Bom) (SB). For the asst. yr. 1974-75, in the case of the assessee itself, such a claim has been allowed by the Delhi Bench 'D' of the Tribunal in ITA No. 1371/Del/78-79 dt., 29th Feb., ....
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....Tribunal had held that weighted deduction on 75 per cent of the expenditure as reasonable. No interference is called for in the order of the CIT(A). So far as the freight and forwarding charges of Rs. 2,67,369 and insurance charges of Rs. 26,606 are concerned, the learned counsel for the assessee conceded that the Special Bench of the GTR in the case of J. Hem Chand and Co., has decided the issue against the assessee. That being so, no interference in the order of the CIT(A) is called for. The expenditure of Rs. 1,339 on export credit and guarantee is covered in favour of the assessee by the Special Bench in the case of J. Hem Chand and Co., referred to above. The order of the authorities below on this account is therefore reversed. 12. ....