TaxTMI 
TaxTMI 
1997 (8) TMI 6
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....after verification of the assessee's claim under section 35B. The Income-tax Officer thereafter entertained the assessee's prayer for rectification of the order and allowed the assessee's claim in respect of matters like coloured albums, export staff travelling expenses, export sales commission, E. C. G. C., foreign dealers visiting expenses. Rectification under section 154 can only be made when a glaring mistake of fact or law committed by the officer passing the order becomes apparent from the record. Rectification is not possible if the question is debatable. Moreover, the point which was not examined on fact or in law cannot be dealt with as a mistake apparent on the record. The dispute raised a mixed question of fact and law. The Tribunal was in error in upholding the assessee's claim for weighted deductions. There is no point in sending the matter to the High Court to deal with the question raised at this stage. We treat the question as referred to this court and answer the question in the negative and in favour of the Revenue. There will be no order as to costs. The appeal is allowed. C. A. Nos. 7666-7667 of 1996, S. L. P. (C) No. 7485 of 1986, 4588-89 of 1989 : Leave g....
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....lined to go into the question raised. However, we make it clear that we are not expressing any opinion on the correctness of the decision referred by the Tribunal. The appeal is dismissed. There will be no order as to costs. S. L. P. (C) No. 9027 of 1987: The special leave petition is dismissed. S. L. P. (C) No. 10982 of 1997: Leave granted. In this case a large number of questions were sought to be raised. We shall deal with only the question relating to section 35B. It appears that the Tribunal was totally unmindful of the various sub-clauses of section 35B(1)(b). Expenses can only be allowed if they are wholly and exclusively incurred for any of the purposes mentioned in these sub-clauses. The section is quite clear and categorical. There is no way that any other expenditure can be given weighted deduction. Under section 35B, it is the assessee's duty to prove facts which will bring the case within any of these sub-clauses. Unless that is done the assessee will not be entitled to get this deduction. The Tribunal has allowed the deduction without verifying or examining the sub-clauses under which this could be allowed. We have passed similar orders in a large number of case....
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....eal will have to be dismissed. So far as section 35B is concerned, the weighted deduction must be examined by the Tribunal on the basis of the facts proved by the assessee and having reference to the various sub-clauses of clause (b) of section 35B(1). If the assessee's case comes specifically within any of these sub-clauses it has to be allowed, otherwise not. The order of the High Court is set aside. The case is sent back to the Tribunal for re-examination of the case in the light of the above direction. No order as to costs. S. L. P. (C) No. 10949 of 1995: Leave granted. This case is only concerned with section 35B. The weighted deduction must be examined by the Tribunal on the basis of the facts proved by the assessee and having reference to the various sub-clauses of clause (b) of section 35B(1). If the assessee's case come specifically within any of these sub-clauses it has to be allowed, otherwise not. The order of the High Court is set aside. The appellate order of the Tribunal is also set aside. The case is sent back to the Tribunal for re-examination of the case in the light of the above direction. No order as to costs. S. L. P. (C) No. 9065 of 1994 and C. A. Nos. 149....
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.... to section 43B will be included. The newly inserted section 35B was not specifically mentioned because it was not necessary to do so, just as it was not necessary to specifically mention section 35B in section 29, which lays down that computation of profits and gains of business or profession shall be computed in accordance with the provisions contained in sections 30 to 43C. Moreover, when the Act specifically says that profits and gains of insurance business shall be computed in accordance with the rules contained in the First Schedule then such computation has to be made according to that rule and not any other rule. We are unable to accept the contention of Mrs. Ramachandran that the benefit of section 35B should also be given to any insurance company. There are certain other questions, apart from section 35B, involved in this case arising out of the decision of the High Court. Those points are not before us. We do not express any opinion on them. The argument was confined only to section 35B. In that view of the matter, we uphold the order of the High Court and dismiss these appeals. There will be no order as to costs. S. L. P. No. 4671 of 1988 and C. A. Nos. 5755 of 1995....
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....No. 7045 of 1995: The dispute in this case relates to an amount of Rs. 1,52,694 (spindle fee) paid to the Indian Cotton Mills Federation for export promotion funds. The contribution to the Indian Cotton Mills Federation does not fall within any of the sub-clauses of section 35B(1)(b). The contribution may be for the promotion of export generally but this sort of contribution to a general body or Chamber of Commerce cannot qualify for weighted deduction. The appeal is allowed. The order of the High Court as well as the appellate order of the Tribunal are set aside. There will be no order as to costs. C. A. No. 12419 of 1996: In view of the observations made in S. L. P. No. 10982 of 1987, the appeal is allowed. There will be no order as to costs. C. A. Nos. 5620-21 of 1995: In view of the observations made earlier these cases are remanded back to the Tribunal. The Tribunal will examine the cases in the light of the various sub-clauses of section 35B(1)(b) and will also examine the facts to find out whether the expenditure comes within any of the categories mentioned in clause (b) of section 35B(1). The order of the High Court is set aside. The appellate order of the Tribunal i....