KUSHWAHA EXPORTS P LTD Vs. COMMISSIONER OF INCOME TAX
HIGH COURT OF DELHI
KUSHWAHA EXPORTS (P) LTD
COMMISSIONER OF INCOME TAX, DELHI-I, NEW DELHI
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MADAN B.LOKUR, J. -
(1.) This reference under Section 256(1) of the Income Tax Act, 1961 has been made in respect of the assessment year 1981-82. Although as many as 8 questions have been referred for our opinion, we are of the view that only two of them really arise for our consideration. These two questions are:
"1. Whether the finding of the Income-tax Appellate Tribunal that the assessee company was not entitled to deduction in respect of travelling expenses of Rs.1,17,525/- claimed by it, is based on a proper interpretation of the relevant provisions of law as contained in Sec.37(1), 37(3) and 35B of the Income-tax Act, 1961"
2. Further, whether the Income-tax Appellate Tribunal was justified in law in holding that the assessee company was not entitled to weighted deduction u/s, 35B of the Act in respect of the aforesaid travelling expenses, simply because the same were allegedly not otherwise allowable as a deduction by virtue of Rule 6D of the Income-tax Rules, 1962""
(2.) The Assessee is a private limited company and one S.S. Kushwaha is one of its Directors. Mr. Kushwaha resides in Moscow and West Germany and visits India to procure business for the Assessee company. Mr. S.S. Kushwaha also procures contracts for Indian parties desirous of making exports to Russia and other foreign countries and the Assessee-company gets a commission on such export orders.
(3.) The Assessee made a claim for deduction for the expenditure incurred on two items: -
1. Travelling and conveyance " Rs.2,71,188.90 2. Weighted deduction under Section 35B of the Income Tax Act on foreign tour expenses of Rs.1,34,430.00.;
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