1996 (8) TMI 6

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....direction given by this court in T. C. P. Nos. 170 and 171 of 1982, dated April 18, 1983, the Tribunal referred the following two questions for the opinion of this court under section 256(2) of the Income-tax Act, 1961, hereinafter referred to as (the "Act") : "1. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the commission of Rs. 1,20,311 pai....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... In so far as question No. 2 is concerned, it consists of two parts. The first part relates to commission paid to local agents of foreign buyers and the second part relates to insurance premium paid to the Export Credit Guarantee Corporation on which weighted deduction under section 35B of the Act was claimed. In so far as the second part of the second question is concerned, the premium paid ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....gn buyers would fall under sub-clauses (i) and (ii) of section 35B(1)(b) of the Act, Accordingly, the Tribunal following the decision of the Special Bench of the Tribunal (Bombay "B" Bench), in the case of J. Hemchand and Co., in I.T.A. Nos. 3255 and 3330 (Bom) of 1976-77, held that the assessee is entitled to weighted deduction under section 35B of the Act. Before us, it was submitted that the fo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ommissioner of Income-tax (Appeals) held that the commission payment to Indian agents of foreign buyers is an expenditure exclusively incurred not only on advertisement or publicity outside India in respect of the goods, but also in obtaining information regarding the market outside India for such goods. The details of the nature of the services rendered by the local agents would go to show that t....