1981 (9) TMI 153

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....the export sales were in the sum of Rs. 1,40,60,032. The percentage of the export sales to the total sales was about 19 per cent. 3. The ld. Reps. of both the sides accepted before us that their respective stands and submissions were only those which had been considered in order of the Special Bench of Tribunal in the case of J. Hemchand & Co. for our part, are in agreement with the reasoning and conclusion adopted in the said order and shall decide the relevant issue in the case of the assessee accordingly. 4. One of the contentions of the assessee is that the CIT (A) erred in holding that the following items of expenditure did not qualify for the relief under s. 35B: .. . Rs. (i) Steamer freight 2,94,903.89 (ii)....

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....med before us that as investigation of fresh facts was not involved, the Tribunal might admit the relevant ground of appeal.  The admission of the relevant ground was opposed by the ld. Deptl. Rep., but having regard to the force of the above mentioned point of the assessee, we admit the ground of appeal. Expenses proportionately eligible for weighted deduction: Nature of exp. Total Proportionate Salaries 8,51,510 1,61,786 Bonus 25,276 4,802 Family Pension 12.215 2,320 Provident Fund 1,04,949 19,940 Rent 60,876 11,566 Miscellaneous expenses . . Electricity charges 20,737 3,940 Welfare 7,180 1,364 Water charges 19,066 3,622 Gratuity 1,23,1....

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....te expenditure on bank exchange booking qualifies for relief under s. 35B.  The expenditure involved is in the sum of Rs. 29,659 and is described as "foreign documents commission". The CIT(A) has purported to follow the principle of the decision in the case of J. Hemchand & Co. but how he has done so is not clear. The relevant facts are also not clear. We consider it just and fair that his order on this limited point should be set aside and matter restored to his file for disposal afresh in accordance with the law. We direct accordingly. 9. The only other point raised in the Deptl. appeal is as below: "On the facts and in the circumstances of the case the CIT(A) erred in deleting Rs. 8,251 being expenditure incurred on entertainm....