1991 (3) TMI 63

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....y T. D. SUGLA J. -In this departmental reference relating to the assessee's assessment for the assessment years 1969-70, 1970-71 and 1971-72, the Tribunal has referred to this court the following two questions of law for opinion : " 1. Whether, on the facts and in the circumstances of the case, the cash allowances paid by the assessee in the accounting periods relevant to the assessment year....

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....nswered. As regards the second question, the relevant facts in brief are that the assessee-company, as in the past, had been carrying on the business of manufacture and sale of cloth during the years under reference. For the purpose of exporting cloth out of India, the assessee had also a branch at Bodnia in London. Admittedly, the assessee incurred certain expenditure such as insurance on the ....

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....ssessee outside India. The nature of the expenditure has already been referred to by us above. It is insurance on the stock of cloth in the shop and interest on bank overdraft, both abroad. Section 35B(1)(b)(iv) clearly provides for allowance of weighted deduction under section 35B in respect of expenditure on maintenance outside India of a branch, shop or agency for the promotion of the sale outs....