1993 (9) TMI 102

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....ssment years 1971-72, 1972-73 and 1973-74, the Income-tax Tribunal, pursuant to a direction issued under section 256(2), has referred the following three questions to this court : " 1. Whether, on the facts and in the circumstances of the case, the customs duty of Rs. 3, 02,837 that was paid by the assessee-firm outside India was an expenditure entitled to weighted deduction under the provision....

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....ht in those countries for sale. The assessee claimed weighted deduction under section 35B by contending that the customs duty so paid was an expenditure which had been incurred, in relation to distribution, supply and provision of goods outside India. The Income-tax Officer did not accept this contention, but the assessee was successful in its appeal before the Appellate Assistant Commissioner.....

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....ould no be allowed under section 35B. In our opinion, the money which was spent by the assessee was clearly an expenditure incurred in relation to the distribution, supply and provision of goods outside India. The goods having been exported from India were to be sold abroad. Without incurring the expenditure of payment of customs duty the said goods could not be distributed, supplied or provide....