Incentive scheme purchases and sister-concern interest were treated as factual matters, so no reference was directed.

Expenditure incurred under an incentive scheme for selected purchasers, linked to their performance, was held not to be advertisement, publicity or sales promotion and therefore did not attract Rule 6B; the issue was decided in favour of the assessee. Interest paid on deposits of a sister concern was also treated as allowable expenditure because the Tribunal's view rested on findings of fact against the Department, again favouring the assessee. As no referable question of law arose, direction for a reference under section 256(2) was refused and the application failed.

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Issues: (i) Whether expenditure incurred on purchasing dinner sets for distribution among selected purchasers was expenditure on advertisement, publicity or sales promotion so as to attract Rule 6B; (ii) Whether interest paid by the assessee on deposits of a sister concern was allowable expenditure.

Issue (i): Whether expenditure incurred on purchasing dinner sets for distribution among selected purchasers was expenditure on advertisement, publicity or sales promotion so as to attract Rule 6B.

Analysis: The expenditure was found to have been incurred under an incentive scheme for purchasers, linked to their performance. On that finding, the amount was neither publicity expenditure nor advertisement expenditure, and Rule 6B had no application.

Conclusion: The question was answered against the Revenue and in favour of the assessee.

Issue (ii): Whether interest paid by the assessee on deposits of a sister concern was allowable expenditure.

Analysis: The Tribunal's view rested on a finding of fact, which went against the Department.

Conclusion: The question was answered against the Revenue and in favour of the assessee.

Final Conclusion: No referable question of law arose for direction under section 256(2), and the application seeking reference failed.

Ratio Decidendi: Expenditure incurred under an incentive scheme for selected purchasers, not being advertisement, publicity or sales promotion, does not attract Rule 6B; a reference will not be directed where the issue is concluded by findings of fact.

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