Mumbai Court January 1992 Judgments

J.B. Boda and Co. (P.) Ltd. Vs. Income-tax Officer

Court: Income Tax Appellate Tribunal ITAT Mumbai

Reported in: (1992)41ITD36(Mum.)

1. This is an appeal filed by the assessee for the assessment year 1986-87. Several grounds are raised, which are dealt with seriatim as follows.2. The first and the most important ground is that the learned CIT (Appeals) ought to have allowed the claim for deduction under Section 80-O of the Act amounting to Rs. 45,50,000. The alternative ground raised without prejudice to the main ground is that the learned CIT (Appeals) erred in upholding that the expenditure incurred has has to be allocated on a pro rata basis with reference to gross income as determined by excluding the dividend income. It is the case of the appellant that the contributions made to a scientific research association in India specified under Section 35(i)(ii) or an association for carrying out rural development programme in India specified under Section 35CCA should be excluded in computing the expenditure deductible from the foreign commission earnings. The relevant facts may first be stated.3. The appellant is a ...