1979 (10) TMI 123

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.... 3,067, holding that such salary is incurred in India and the fact of his being abroad would not make any difference. In the assessee's appeal before the Commr. (Appeals) the assessee urged that such deduction could be allowable under sub-cls. (ii), (vi) or (viii) of s. 35B(1)(b) and that it is now well established that the expenditure incurred in India need not be disallowed for weighted deduction. The Commr. (Appeals) observed that it was difficult to say that salary of an employee during the period of his tour should be treated as expenses for promoting export business. The Commr. (Appeals), however, referred to a Tribunal decision in ITA Nos. 3255 & 3330 (Bom) / 1976-77, in which it was held that common expenses could be apportioned and....

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.... (Appeals) referred, inter alia to the Mysore High Court decision in Balanoor Tea & Rubber Co. Ltd.,(1) which according to the Commr., was approved by the Supreme Court in Cambay Electric Supply Industrial Co. Ltd. (2) The Commr. was of the view that the provisions of s. 80E considered in 93 ITR were similar in wording to the provisions of s. 80QQ and held that the assessee was eligible for 20 per cent relief on the entire sum of Rs. 19,97,578, i.e. Rs. 3,99,516, subject to the limit provided in s. 80A(2). The Commr. accordingly granted further relief of Rs. 3,24,000 over and above the relief of Rs. 75,512 allowed by the ITO. 4. We have heard the parties and are of the view that the Revenue's contention is devoid of merit. The provisions o....