1998 (8) TMI 42

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....the instance of the Revenue, by the Income-tax Appellate Tribunal under section 256(2) of the Income-tax Act, 1961 (for short "the Act"), relating to the assessment year 1983-84. The question referred to this court is as follows : "Whether, on the facts and in the circumstances of the case, the assessee is entitled to weighted deduction under section 35B(1)(b) of the Income-tax Act, 1961 ?" ....

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....India that is sufficient to get the benefit of weighted deductions under section 35B. It was held that the commission paid by the assessee to the agents is the expense incurred by the assessee to maintain an agency outside India. The assessee is, therefore, entitled to claim deduction in respect of the above payment under section 35B(1)(b)(iv) of the Income-tax Act." The only submission of lear....

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....s squarely a payment for the maintenance outside India of an agency for the promotion of the sale outside India within. the meaning of section 35B(1)(b)(iv) of the Act. Similar view was taken by this court in Srivilas Cashew Co. v. CIT [1992] 196 ITR 887, in which this court explicitly said that the commission paid by the assessee to the foreign agents is the expenditure incurred by the assesse....