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Issues:
1. Interpretation of section 35B(1)(b) for assessment year 1983-84. 2. Eligibility of weighted deduction for commission paid to foreign agents. 3. Discrepancy between decisions of Kerala High Court and Karnataka High Court. 4. Eligibility of weighted deduction for commission paid to Indian agents. 5. Application of clauses (i), (ii), (vi), and (vii) of section 35B(1)(b) for commission to Indian agents. Analysis: 1. The judgment addresses the interpretation of section 35B(1)(b) for the assessment year 1983-84. The clauses in force were (i), (iv), (vii), and (ix). The issue revolved around whether the assessee maintained an agency outside India for the promotion of sales. The tribunal analyzed the clauses and concluded that the commission paid to foreign agents qualified for weighted deduction under clause (iv) as it was for maintaining an agency for sales promotion. The decision was supported by the Kerala High Court ruling. 2. The eligibility of weighted deduction for commission paid to Indian agents was also scrutinized. The tribunal considered various High Court decisions and the Special Bench ruling. It was established that clauses (i), (iv), (vii), and (ix) were applicable for the assessment year. The commission to Indian agents did not fall under clause (i) for advertisement or publicity outside India. Lack of evidence for publicity outside India led to the denial of weighted deduction for the commission paid to Indian agents. 3. A discrepancy between the decisions of the Kerala High Court and Karnataka High Court regarding the interpretation of section 35B(1)(b) was highlighted. While the Karnataka High Court linked the commission to foreign agents with maintenance and excluded it from weighted deduction, the tribunal preferred the Kerala High Court decision, emphasizing the promotion of sales aspect for eligibility for weighted deduction. 4. The tribunal further delved into the application of clauses (i), (ii), (vi), and (vii) for the commission paid to Indian agents. The Bombay High Court's ruling was considered, which stated that the commission would fall under clauses (ii), (vi), and (vii), which were not applicable for the relevant assessment year. Lack of evidence for advertisement or publicity outside India led to the denial of weighted deduction for the commission paid to Indian agents. This detailed analysis of the judgment provides a comprehensive understanding of the issues addressed and the tribunal's reasoning behind the decisions rendered.
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