1998 (8) TMI 84

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.... 256(1) of the Income-tax Act, 1961, made at the instance of the Revenue raise the following common question of law arising out of the assessment years 1972-73, 1973-74, 1974-75 : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in allowing weighted deduction in respect of expenses on packing and forwarding and import licence fee under section 35B(1)(b) of....

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....e India and, therefore, qualified for weighted deduction under section 35B(1)(b)(viii) of the Income-tax Act, 1961 (the provision as it stood at the relevant time). As to the import licence fee the finding recorded by the Appellate Assistant Commissioner and upheld by the Income-tax Appellate Tribunal is : "This import licence fee has been paid by the assessee in respect of import entitlements ....

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....of services outside India and should have been in connection with or incidental to the execution of any contract for the supply outside India of such goods, services or facilities. Packing and forwarding expenses were obviously incurred within the country before exporting the goods. So also the expenses on import licence fee cannot be said to have been incurred outside India. None of the expenses ....