Weighted deduction on commission payments requires proof of export-related purpose and proper supporting records.

Commission paid in India to Indian agents did not qualify for weighted deduction because the taxpayer failed to prove that the expenditure was incurred for obtaining information about markets outside India or for export promotion. No separate accounts were maintained for the relevant commission, and the record did not support the basis for allowing 50% of the payment as deductible. The claimed deduction was therefore unavailable on the facts and evidence presented.

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Issues: Whether commission paid in India to Indian agents qualified for weighted deduction under section 35B(1)(b)(ii) of the Income-tax Act, 1961.

Analysis: The claim for weighted deduction depended on proof that the expenditure was incurred for obtaining information regarding markets outside India or for export promotion. The record did not show sufficient material to establish such purpose, and no separate accounts were maintained for the relevant expenditure. The payment was made in the usual course of business, and the basis for apportioning 50% of the commission for deduction was not demonstrated.

Conclusion: The assessee was not entitled to weighted deduction on the commission paid to Indian agents.

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