COMMISSIONER OF INCOME TAX Vs. JUNACH P LTD

JUDGEMENT

(1.) This reference, at the instance of the revenue, pertains to the assessment year 1983-84. The question that has been referred for the determination of this court is as under:

(2.) Section 35-B of the Income-tax Act, 1961 relates to Export Markets Development Allowances and by virtue of the provisions of this section, inter alia, any expenditure referred to in clause (b) of Section 35-B (1) is to be allowed as a deduction to the extent of the sum equal to one and one-third times of the amount of such expenditure incurred during the previous year. Sub- clause (b) of sub-section (1) of Section 35-B details the expenditures referred to for which a deduction can be claimed. We are concerned with sub-clause (ix) which reads as under:

(3.) This provision clearly indicates that the eligible activities for the promotion of the sale outside India of such goods, services or facilities are to be prescribed. They are so prescribed by Rule 6-AA of the Income Tax Rules, 1962 which, to the extent relevant, reads as under: