1990 (11) TMI 44

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.... it is not necessary that the assessee must export the goods or be an exporter and, in that view, remitting the matter to the Income-tax Officer for further enquiry ?" Shortly stated, the facts are that Messrs. Project and Equipment Corporation of India Ltd. (hereinafter referred to as "PEC") obtained a contract from a Dubai party for supply of distribution materials in kind of electrical equipment and, on its part, entered into a contract with the assessee-company for supply of these distribution materials to it. Under this contract, PEC was entitled to certain commission. For the assessment year under consideration, the assessee claimed weighted deduction under section 35B of the Act on the commission of Rs. 6,87,575 paid to PEC. The I....

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.... he deals in". As neither the Income-tax Officer made such enquiry nor the "assessee produced any evidence in support of his claim under sub-clauses (i) and (ii) thereof during the assessment proceedings," the Tribunal remitted the matter to the Income-tax Officer for such enquiry during which the assessee was to lead evidence to show that the conditions enumerated in subclauses (i) and (ii) of section 35B(1)(b) of the Act had been fulfilled by it. Before us, the contentions raised before the Tribunal have been reiterated. The short question which calls for determination is whether weighted deduction under section 35B is available with reference not only to the qualifying expenditure incurred directly by the assessee but also with ref....

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....tivity and quality of jute. While it is not possible to lay down any general rule in this regard which would be applicable in all situations, it may be stated that individual members or constituents of an association or body, which undertakes export markets development or agricultural development on behalf of or for the benefit of its members, will qualify for the weighted deduction under section 35B or 35C with reference to their share in the expenditure incurred by the association or body, provided : (a) the expenditure falls under one or more of the several qualifying categories specified in the respective sections and the rules, if any, framed thereunder; (b) where the expenditure incurred by the association or body includes any e....