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TMI Blog1997 (11) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... aterials to hold that the assessee is entitled to the deduction under section 35B in respect of the commission paid to Amalgamations Limited and also on its share of contribution paid to India Pistons Limited for participating in a trade exhibition?" The question referred to us consists of two parts one regarding the claim of the assessee for weighted deduction in respect of the commission paid to Amalgamations Ltd., and another in respect of its share of its contribution paid to India Pistons Limited for participating in an international trade exhibition. The assessee is a company and the assessee claimed weighted deduction under the provisions of section 35B of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), in its as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preferred an appeal before the Commissioner of Income-tax (Appeals) against the order of the Income-tax Officer denying its claim for weighted deduction on the share of export promotion division expenditure and the commission paid to Amalgamations Ltd. and on the share of the expenditure for participation in the second Asian Automotive and Accessories Exhibition. The Commissioner of Income-tax (Appeals) held that the commission paid to Amalgamations Ltd., was not covered by any of the provisions of section 35B of the Act, and further the commission was also paid in India and hence the assessee was not entitled to claim weighted deduction. In so far as the share of expenditure for participation in the Second Asian Automotive and Accessories ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entioned under section 35B of the Act, and the assessee is not entitled to weighted deduction. He however, fairly brought to our notice an earlier unreported decision of this court in CIT v. India Pistons Repco Ltd. (T. C. No. 245 of 1984, dated February 11, 1997---since reported at [1999] 240 ITR 59), wherein this court has held that the assessee was entitled to weighted deduction in respect of the commission paid to Amalgamations Ltd., Mr. P. P. S. Janarthana Raja, learned counsel for the assessee, submitted that the decision of this court in CIT v. India Pistons Repco Ltd. [1999] 240 ITR 59 cited supra would apply to the commission paid to Amalgamations Ltd. As regards the share of expenditure incurred by the assessee in the participatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid to India Pistons Ltd. is concerned, the Income-tax Officer has not allowed the claim of the assessee on the ground that there was no nexus between the expenditure and the items enumerated under section 35B of the Act. The Commissioner of Income-tax (Appeals) disallowed the claim on the ground that the assessee had not participated in the said exhibition. The order of the assessment clearly shows that the exhibition was held in a foreign country, viz., Singapore. The Appellate Tribunal on a perusal of the material came to the conclusion that the assessee had participated in the exhibition. The logical inference that flows from the above finding of the Appellate Tribunal is that the assessee had displayed its articles in the Second Asia ..... X X X X Extracts X X X X X X X X Extracts X X X X
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