1988 (12) TMI 131

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.... 2. The main ground of appeal is in regard to claim of weighted deduction under s.35B in respect of Fumigation charges of Rs. 62,720 and Export Inspection Certificate charges of Rs. 44,687. In this regard, it was the claim of the assessee that the above expenses qualify for deduction in terms of r. 6AA of the Rules read with s. 35B(1)(b)(ix) of the IT Act. The learned CIT(A), however, held that th....

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....ian, learned Departmental Representative, we se merit in the contention of the learned counsel of the assessee. In so far as the applicability of r. 6AA is concerned, the Tribunal fully considered this issue in the case of ITO vs. Satya Industrial Corporation (1987) 28 TTJ Del 277 (TM) : (1987) 21 ITD 122 (Del) (TM). In that case, the learned Third Member, following the decision of the Special Ben....

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.... utilised the facilities provided by the Government Analysing Department. Such arrangement, according to the learned counsel of the assessee, is tantamount to maintenance of laboratory or other facilities for quality control as contemplated under r. 6AA of the IT Rules. His contention is fully supported by the decision of the Allahabad Bench of the Tribunal in the case of Kothari Carpets (1984) 9 ....

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..... This was what the assessee had done. The Tribunal held that the assessee had maintained an agency outside India in terms of sub-cl. (iv) of s. 35B(1)(b) and was entitled to relief in terms of that section on the commission paid to the foreign firm. Applying the principle determined by the Tribunal, it can be held that the assessee in this case is maintaining the same relation which entitles the ....