E)As Regards Question v. Answer This Question In The Affirmative And In Favour Of

Tribunal for the opinion of this court under Section 256 (1) of the Income Tax Act. This question has been raised in respect of three assessment years viz. 1976-77, 1978-79 and 1979-80. This question has been referred in respect of theassessment years 1977-78, 1978-79 and 1979-80. . This question was referred in respect of theassessment years 1976-77, 1977-78 and 1978-79. 4. Whether tribunal was right in holdingassessee’s claim for weighted deduction on theexpenses incurred on the following heads do notfall under Section 35B (1)(b) and in notallowing weighted deduction under Section35B(1)(b). i) Special packing on goods exported. ii) Gifts given to foreign parties. This question was referred in respect of Assessment years 1976-77, 1977-78, 1978-79 and 1979-80. This question was raised in respect of the assessment year 1976-77 only. This question was referred in respect of the assessment year 1976-77 only. This issue was raised in respect of the assessment year 1976-77 only. 3.After hearing both the sides and perusing the record, we answer the questions referred as under. The relevant portion of Section 35B)b)(i) reads as under. issue as referred must be answered in the affirmative and in favour of the revenue. answered in the affirmative and in favour of the revenue. evidence is led on this behalf, it is impossible todivide such a business expenditure in proportion to theexport related activities and then say that a proportionthereof is incurred wholly and exclusively foractivities for the promotion of sale of goods orperformance of services outside India. The question in so far as this aspect is concerned is therefore answered in the affirmative and in favour of the revenue. e)As regards Question No.5, counsel for theparties are in agreement that the question has alreadybeen answered in the affirmative and in favour of therevenue by the judgment of the Apex Court in the case ofBrooke Bond India Ltd. Vs. CIT reported in 225 ITR 798S.C. and in the case of Pubjab State IndustrialDevelopment Corporation Ltd. reported in 225 I.T.R.792 S.C.In the said judgments it is laid down thatfees paid to the Registrar of Companies amounts to acapital expenditure. Following those decisions, we answer this question in the affirmative and in favour of the revenue. f) As regards Question No.6, counsel for the parties agree that this question has been answered inthe affirmative and in favour of the revenue by ajudgment of this court in the case of CIT Vs.J.K.Chemicals reported in 207 ITR 985 .In that case,it was held by this court that if an expenditure had question is therefore, answered in the affirmative and in favour of the revenue. g)The counsel for the parties agree that 7th answer this question in the affirmative and in favour of the revenue. i)In view of answers as given hereinabove, the reference is disposed off with no order as to costs. (R.S.MOHITE, J.)( F.I.REBELLO, J.)