EXPORT CREDIT AND GUARANTEE CORPN LTD Vs. INCOME TAX OFFICER
INCOME TAX APPELLATE TRIBUNAL
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V. Balasubramanian, Vice President -
(1.) THE assessee is a Government undertaking. THE common grounds of appeal for all these years relate to disallowance of surtax liabilities claimed as the revenue expenditure for the purpose of the assessee's business and the non-grant of relief under Section 35B of the Income-tax Act, 1961 ('the Act').
(2.) The point relating to the allowance of surtax liability is covered by the decision of the Tribunal in the case of Amar Dye-Chem. Ltd. v. ITO  3 SOT 384 (Bom.) (SB) against the assessee.
The assessee claimed weighted deduction under Section 35B of Rs. 29,09,639 being 50 per cent of the overall expenses incurred by the assessee under various heads for the assessment year 1975-76. Likewise for the assessment years 1976-77 and 1977-78, Section 35B relief of Rs. 31,53,035 and Rs. 34,51,047 were claimed. The ITO disallowed the claim. According to the ITO, the assessee neither performed any services outside India nor executed any contract for the supply outside India of any goods, services or facilities. Even if the assessee is regarded as an exporter of goods or services, according to the ITO, the assessee was not entitled to weighted deduction in respect of the expenses claimed since they were incurred in India.
(3.) ON appeal the Commissioner (Appeals), upheld the order of the ITO. In so doing, he relied on his decision for the assessment year 1977-78 in the assessee's own case.;
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