https://www.taxtmi.com/caselaws?id=25859 The High Court of Kerala, in two Income Tax References, addressed the interpretation of section 35B(1)(b)(iv) of the Income-tax Act, 1961. The court emphasized that for a weighted deduction for agency commission paid to foreign agents to be allowed, it must be proven that the agents promoted the assessee's sales abroad. The court distinguished between payments to agents and trade discounts, stating that payments to principal buyers are trade discounts, not commission. The court found that the Tribunal misapprehended the legal significance of the case facts and ordered a fresh consideration based on correct legal principles. Each party was to bear its costs, and the judgment was to be sent to the Income-tax Appellate Tribunal, Cochin Bench for further action. en-us Fri, 13 Mar 1987 00:00:00 +0530 Mon, 01 Feb 2010 13:22:38 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=25859 The High Court of Kerala, in two Income Tax References, addressed the interpretation of section 35B(1)(b)(iv) of the Income-tax Act, 1961. The court emphasized that for a weighted deduction for agency commission paid to foreign agents to be allowed, it must be proven that the agents promoted the assessee's sales abroad. The court distinguished between payments to agents and trade discounts, stating that payments to principal buyers are trade discounts, not commission. The court found that the Tribunal misapprehended the legal significance of the case facts and ordered a fresh consideration based on correct legal principles. Each party was to bear its costs, and the judgment was to be sent to the Income-tax Appellate Tribunal, Cochin Bench for further action. Case-Laws Income Tax Fri, 13 Mar 1987 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=25859