1984 (4) TMI 45

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....and Rs. 3,500 qualify for deduction under s. 35B ? (In ITC No. 175/80) 1. Whether, on the facts and in the circumstances of the case, the Tribunal is legally correct in holding that the commission payments of Rs. 6,89,236, Rs. 67,254 and Rs. 3,500 qualify for deduction under section 35B ? 2. Whether, on the facts and in the circumstances of the case, portion of the salary paid to staff for the period they were away on foreign tour would qualify for deduction under section 35B ? 3. Whether, on the facts and in the circumstances of the case, the cost of D. D. Stamps amounting to Rs. 6,047 would qualify for deduction under s. 35B? 4. Whether, on the facts and in the circumstances of the case, the Tribunal is legally correct (in ....

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....rt already referred to. The Bench had observed as follows in para. 28 of their order : " 28. The commission payment in this case was to parties who brought about the export sales. It was those parties who furnished information to the assessee about the foreign buyers and publicised the assessee's goods to those buyers. It was they who brought together the buyers and the seller for concluding the sales. It was through them that the goods were supplied outside India. That being so this expenditure is allowable under sub-clauses (i) and (ii) of the clause (b) of sub-section (1) of section 35B". On an application of this conclusion to the facts of the case, it was concluded in the previous order that the weighted deductions made under s. ....

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....ssessee itself, but generally in such cases the publicity and other steps necessary in order to attract customers from abroad cannot conveniently be taken by the Indian exporter and generally it would have to be done either through a foreign party or a competent (Indian) party with expertise in this matter. It makes little difference whether payment is made in foreign currency to a foreign party to do the publicity, or to an Indian party to do the same thing. The main point is that the expenditure in question should be attributed towards the matters enumerated in clause (b) of s. 35B. However, the main point urged by Mr. Wadhera has been that the expenditure should be incurred outside India and should not be incurred in India. He therefo....