1985 (5) TMI 92

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....of ECGC and salary and office expenses such as postage and telegram, telephone, printing and stationery etc. 2. From the perusal of the orders of the two lower authorities, we find that the additional grounds raised in respect of expenses which were also dealt with by them. The only difference was that in respect of ECGC, the assessee's claim was admitted only for 50 per cent whereas in the additional ground in CO of the assesses its claim was 100 per cent and in respect of salary and other office expenses, it was allowed at lesser percentage against the assessee's claim at 75 per cent in respect of salary and 50 per cent in respect of other expenses, as per Special Bench decision. Both these grounds are admitted. 3. For the sake of c....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ch he made available for out perusal. He submitted that Special Bench has not discussed this particular item specifically or in particular. Therefore, the assessee's claim in respect of this item deserves to be allowed. He also made available to us Bombay Bench decision dt. 26th May, 1982 in I. T. A. Nos. 393, etc. He submitted that in view of Godawari Devi Saraf's decision, the only judgment on credit interest is that of M. P. High Court and this must hold the filed especially when Special Bench has not dealt with it specifically or in particular. 5. The learned Senior Departmental Representative Mr. R. K. Bali, on the other hand, submitted that so far no one's claim of weighted deduction in respect of packing items credit has been allo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... account were given for purchase of raw material and this credit is only given when the contract for supply of goods to the foreign parties is shown and, therefore, these findings of fact clearly indicate that this expenditure was incurred in connection with the execution of any contract for the supply outside India. It is significant that even incidental expenditure will be covered under this clause...." We have also got available for our assistance Bombay bench decision in the case of Aaydee Corporation in I. T. A. Nos. 393 etc., which is placed on the assessee's compilation. The learned Members in the said case have observed that: ".....The packing credit interest could be a good barometer in judging it. So, we come to the finding ....