1998 (9) TMI 49

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.... to the assessment year 1977-78 has been referred at the instance of the Revenue for the opinion of the High Court "Whether, on the facts and circumstances of the case, the assessee is entitled to weighted deduction under section 35B of the Income-tax Act, 1961, in respect of the sum of Rs. 5,43,G28 representing expenditure oil refining, melting and handling charges ?" From the statement of ....

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....ovision as stood at the relevant time). The claim was allowed by the Assessing Officer forming in opinion that the same was incurred wholly and exclusively in respect of export business carried on by the assessee. The Commissioner of Income-tax, on examining the assessment records formed an opinion that the order of the Income-tax Officer permitting the above said claim was prejudicial to th....

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....uyers got the said silver melted and got it refined. Only after satisfying about its purity they paid the sale proceeds to the assessee deducting from the sale proceeds the said expenses on refining, handling and melting. The Income-tax Officer is right in his allowing the assessee deduction under section 35B on these expenses." Accordingly, the Tribunal set a-side the order of the Commissioner....

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....eding para is very wide. The expenditure may be incurred in India or outside India, but the performance of services must have been outside India. It may be in connection with or even incidental to the execution of any contract for the supply outside India of such goods, etc. In the case at hand, it is clear from the statement of the facts of the case that fulfillment of the contract for the supply....