TaxTMI 
TaxTMI 
2005 (1) TMI 91
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....aries of the directors and the managing director since they had no part to play in terms of rule 6AA(c) and also that they were relatable to section 35B(1)(b)(iii) which was not operative for the assessment year in question, having been omitted by the Finance (No.2) Act, 1980, and whether the said expenditure was allowable under section 35B(1)(b)(i)? (2) Whether, on the facts and in the circumstances of the case the Appellate Tribunal erred in law in holding that weighted deduction was also not admissible with reference to stationery, printing and postage expenses on the ground that they were relatable to section 35B(1)(b)(iii) which was not operative for the assessment year in question, having been omitted by the Finance (No.2) Act, 198....
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....) checker) 2. Director's salary 1,96,800 1,64,000.00 (5/6) 3. Salary of managing 33,600 28,000.00 director (5/6) 4. Export development A/c. 79,071.62 &nbs....
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....fices) 9. Discount to foreign buyers 1,59,812 79,906.00 (publicity outside India) (75%) 10. Commission to agent 60,841 60,841.00 (100%) --------....
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....that the Department could only say that the salary for the period from April 1, 1981, to July 31, 1981, could not be considered. It also held that since the applicant had maintained certain staff for checking the quality of the export items consisting of quality controller and checkers, the applicant could be said to have maintained "other facilities" for quality control or inspection of the goods. However, it has held that the director and the managing director could not be fitted in that class and that though weighted deduction was allowable under section 35B on the salary to staff (quality controller and checker), no weighted deduction was admissible with reference to the salaries of the managing director and the directors, since they ha....
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....ra, learned standing counsel for the Revenue. In respect of the claim of weighted deduction with respect to the salaries of the directors and managing director we find that the same could not be said to be governed under sub-clause (i) of section 35B(1)(b) of the Act since it cannot be said to be related to advertisement and publicity outside India. The salary has been paid to the directors and managing director for running the business and not for advertisement or publicity outside India, and, therefore, the Tribunal has rightly disallowed the claim of weighted deduction in respect of the salary of directors and managing director. Further it cannot be justified under rule 6AA(c) of the Rules because the applicant had maintained certain ....