COMMISSIONER OF INCOME TAX Vs. BATA INDIA LTD

JUDGEMENT

(1.) This is a case where the Commissioner has come up on reference on the following question :

(2.) The assessment year involved is 1972-73 for which the relevant year of account is the calendar year 1971. The assessee claimed that it held a con-ference at Calcutta for promotion of export styled "Export for 1971". For this, the assessee incurred an expenditure of Rs. 2,60,000 for visiting personnel from foreign countries in connection with the conference. In the course of the assessment proceedings, the assessee claimed that it was entitled to weighted deduction in respect of expenses incurred under Section 35B of the Income-tax Act, 1961, ("the Act"). The Income-tax Officer asked for particulars of the conference that was held and came to the conclusion that it was in the nature of a routine programme and he did not accept the assessee's contention that the conference was held for promotion of export. He, therefore, rejected the assessee's claim for weighted deduction.

(3.) The Appellate Assistant Commissioner was of the view that it was unnecessary to go into the question whether the conference was held for the purpose of export promotion inasmuch as the expenses on which the weighted deduction had been claimed were incurred entirely in India. Under Section 35B, the assessee was not entitled to any deduction in such a case.