1991 (9) TMI 45

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....ff engaged in the export sales ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is right in treating 75% of the salary and allowances to be eligible for weighted deduction and is not the order and the estimate at 75% unreasonable, unsupported by materials and based on conjecture and surmises ? " The respondent is a cashew company. It is an exporter. We are concerned with the assessment year 1977-78 for which the accounting period ended on November 30, 1976. Amongst others, the respondent-assessee claimed salary and allowances to the staff engaged in export sales in the sum of Rs. 43,000. Weighted deduction under section 35B in respect of the said amount was negatived by the Income-tax Officer. In appeal, t....

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....1 which, in turn, gave effect substantially to the decision of a Special Bench of the Tribunal in J. Hemchand and Co.'s case. It is clear from a reference to clause 3(a) of the circular aforesaid, which has been extracted in paragraph 7 of the judgment of this court, that the assessee will be entitled to weighted deduction in respect of the expenses on salary and the expenses on the staff engaged in the export sale irrespective of the fact whether the same is incurred in or outside India. Following the Bench decision of this court in I.T.R. Nos. 176 to 187 of 1987 (CIT v. Kerala Nut Food Co. [1991] 192 ITR 585), dated April 2, 1991, we answer question No. 1 referred to this court in the affirmative, in favour of the assessee and against the....