1999 (7) TMI 7

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....oduction of "de-cake powder" from groundnut oil cake by solvent extraction process claimed weighted deduction under section 35B(1)(b)(iii) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), in respect of laboratory expenses amounting to Rs.39,921 and Rs.41,160, respectively. The Assessing Officer rejected the claim and the Appellate Commissioner of Income tax (Appeals) upheld the ....

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....sociation with any other person, any expenditure (not being in the nature of capital expenditure or personal expenses of the assessee) referred to in clause (b), he shall, subject to the provisions of this section, be allowed a deduction of a sum equal to one and one-third times the amount of such expenditure incurred during the previous year: Provided that in respect of the expenditure incurre....

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.... Reading the provision it clearly transpires that the expenditure incurred outside India was required to be taken into consideration while granting the benefit as contemplated under sub-section (1)(a) of section 35B. The assessee claimed benefit under section 35B of the Act, on the ground that the amount was spent in India for analysis of the standard of the goods exported. The' Assessing Offic....

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....t. It was contended that without the certificate of a laboratory certifying that the goods were of a standard and quality as required the goods cannot be exported. As a certificate was necessary, the Tribunal took the view that the same should have been taken into account for working out the relief under section 35B of the Act. The Tribunal expressed an opinion that: "We are of the opinion that....