2002 (11) TMI 18

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....ribunal, New Delhi (for short "the Tribunal"), has referred under section 256(1) of the Income-tax Act, 1961 (for short "the Act"), the following question for our opinion: "Whether, on the facts and circumstances of the case, the assessee was entitled to weighted deduction under section 35B on sales made in India though against the foreign currency in the assessment year 1976-77?" The material f....

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....ner of Income-tax (Appeals) (for short "the CIT (Appeals)"). Following the order of the Tribunal in the case of India Handicrafts Emporium, the Commissioner of Income-tax (Appeals) granted partial relief to the assessee under the said section. Being aggrieved, the Revenue took the matter in appeal to the Tribunal. The Tribunal, following the decision of the Special Bench in the case of J. Hem Cha....

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....ure which qualifies for deduction under section 35B(1)(b)(iii) will have to be the expenditure incurred outside India in connection with distribution, supply or provision outside India of such goods, services or facilities. No weighted deduction under section 35B can be allowed to the assessee for expenditure incurred in India in connection with sale of goods in India. As noted above, in the prese....