COMMISSIONER OF INCOME TAX Vs. REGISTHAN PVT LTD

JUDGEMENT

(1.) ON an application filed under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following question for our opinion :

(2.) THE assessee-company derives income from manufacturing and sale of ready made garments for the relevant assessment year 1976-77. During the course of assessment, the Assessing Officer has noticed that the assessee has claimed weighted deduction under Section 35B of the Income-tax Act, 1961, in respect of several items which includes salary paid to the technical director in the tune of Rs. 67,948. THE Assessing Officer has rejected the claim of the assessee holding that it does not come under any of the sub-clauses of Sub-section (1)(b) of Section 35B of the Income-tax Act, 1961.

(3.) SUB-clause (viii) of SUB-section (1)(b) of Section 35B provides that the performance of services outside India in connection with, or incidental to, the execution of any contract for the supply outside India of such goods, services or facilities eligible for deduction under Section 35B of the Income-tax Act, 1961.