(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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.... 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 specified heads to promote the scale outside India, of any good....

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....ials 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 respect of expenditure incurred on performance of services outside I....