1984 (3) TMI 140

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....unal in the case of Amar Dye Chem. [IT Appeal No. 3643 (Bom.) of 1974-75]. The said conclusion of the ITO has been endorsed by the Commissioner (Appeals) on appeal filed by the assessee. The assessee has consequently come up in second appeal before us. 2. We have heard the representatives of the parties at length in this appeal. We very much regret to observe that while deciding the claim of the assessee for weighted deduction under section 35B both the authorities below have referred to the decision of the Special Bench in Amar Dye Chem.'s case which has nothing to do with the dispute involved in the present case. The correct matter deciding this matter is the Special Bench decision in the case of J.H. & Co. v. Second ITO [1982] 1 SOT 150....

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.... words, any expenditure specifying the conditions laid down in sub-clauses (i) and (iv) to (viii) will get the benefit of weighted deduction irrespective of whether the same was incurred in or outside India. The commission on foreign business was item 14 of the list prepared by the AAC which had been allowed in full by him and the said order was confirmed by the Special Bench. A later judgment of the Bombay Special Bench in G. & Co. v. ITO [1983] 3 ITD 566 has already held that commission payment in India cannot be taken as a disqualifying factor and the payment made to third parties who brought the assessee and the foreign buyers together was admissible for weighted deduction (sic.) because it was because of the advertisement and publicity....