1999 (2) TMI 51 - HC - Income Tax

Summary

The High Court of Delhi ruled on the eligibility of weighted deduction under section 35B of the Income-tax Act, 1961 for expenditure on commission to an Indian agent and entertaining foreign customers. The Tribunal allowed the deduction for commission paid to the Indian agent but disallowed the deduction for entertaining foreign customers. The court referred to a Supreme Court decision stating that expenditure must be proved to be wholly and exclusively for specific purposes to be eligible for deduction. In this case, the court found that the expenditure on commission and entertaining foreign customers did not meet the criteria for deduction under section 35B, ruling in favor of the Revenue and against the assessee.