(a) whether expenditure incurred on purchase of raw materials and payment of wages will qualify for weighted deduction within the meaning of section 35B; and (b) whether drafting of labour for execution of such a contract locally or abroad would make any difference in the claim for weighted deduction.

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....Income Tax<br>INSTRUCTION NO. 874/CBDT &nbsp;Dated : September 4, 1975 Section(s) Referred: 35B ,35B(1)(b) Statute: Income - Tax Act, 1961 The Finance Act, 1968 has inserted section 35B in the Income-tax Act, 1961 with effect from 1st April, 1968. Under this section, domestic companies as well as non-corporate taxpayers resident in India, who have incurred any expenditure under the spe....

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....ce: (a) whether expenditure incurred on purchase of raw materials and payment of wages will qualify for weighted deduction within the meaning of section 35B; and (b) whether drafting of labour for execution of such a contract locally or abroad would make any difference in the claim for weighted deduction. 3. The Board has been advised that clause (viii) of section 35B allows deduction in ....