Weighted deduction for foreign publicity expenses turned on unclear subsidy facts, leaving the statutory question unanswered.

Weighted deduction under section 35B(1)(a) was considered in relation to expenditure on foreign publicity, but the availability of the deduction depended on whether the amount claimed had in fact been subsidised by an export promotion council. Because the factual basis needed to apply the statutory provision was not clear, the reference was returned unanswered and no substantive determination on entitlement was made.

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Issues: Whether the assessee was entitled to weighted deduction under section 35B(1)(a) of the Income-tax Act, 1961 on the full amount of expenditure connected with foreign publicity, where part of the amount was stated to be subsidised by an export promotion council.

Outcome: The reference was returned unanswered because the factual basis necessary to apply the statutory provision was not clear.

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