1984 (2) TMI 68 - HC - Income Tax

Summary

The High Court of Bombay dismissed an application under s. 256(2) of the I.T. Act, 1961, regarding the allowance of weighted deduction under section 35B(1)(b) for commission paid to an agent in Muscat. The Tribunal found the payment to be commission, not trade discount, and upheld the deduction. The court ruled that the payment fell under s. 35B(1)(b) based on the agency agreement and circumstances, denying the Department's claim. The application was dismissed with costs.