1996 (4) TMI 53

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....K. SINGHAL J.---The Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated September 28, 1984, in respect of the assessment year 1976-77 : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was not entitled to claim weighted deduction of Rs. 8,29,518 being export expenses and R....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vices or facilities, and... " Explanation 2 was also inserted by the Finance Act, 1973, retrospectively with effect from April 1, 1968, which reads as under :--- " Explanation 2.---For the purposes of sub-clause (iii) and sub-clause (viii) of clause (b) expenditure incurred by an assessee engaged in the business of :--- (i) operation of any ship or other vessel, aircraft or vehicle; or ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ge or arrangement for carriage it shall not be regarded as expenditure on supply outside India of service or facility. Thus, Explanation 2 has excluded the carriage of goods which is the subject-matter of dispute in the present reference. The expenditure may be incurred in India in connection therewith or it may be incurred outside India or the carriage of such goods may be to their destination ou....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....spute was with regard to freight and packing charges and it was held that they fell within the exclusive sub-clause (iii) of section 35B(1)(b), namely, on the carriage of such goods of their destination outside India and, therefore, no weighted deduction in respect of packing charges and freight was allowable. In view of the provisions of section 35B(1)(b)(iii) read with the Explanation 2, we a....