9911796707
TMI Blog1996 (8) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... 18, 1983, the Tribunal referred the following two questions for the opinion of this court under section 256(2) of the Income-tax Act, 1961, hereinafter referred to as (the "Act") : "1. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the commission of Rs. 1,20,311 paid to the State Trading Corporation as service charges would qualify for weighted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt relates to commission paid to local agents of foreign buyers and the second part relates to insurance premium paid to the Export Credit Guarantee Corporation on which weighted deduction under section 35B of the Act was claimed. In so far as the second part of the second question is concerned, the premium paid to the Export Credit Guarantee Corporation would qualify for weighted deduction unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Accordingly, the Tribunal following the decision of the Special Bench of the Tribunal (Bombay "B" Bench), in the case of J. Hemchand and Co., in I.T.A. Nos. 3255 and 3330 (Bom) of 1976-77, held that the assessee is entitled to weighted deduction under section 35B of the Act. Before us, it was submitted that the foreign buyers actually issued instructions to the local agents to obtain the goods req ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of foreign buyers is an expenditure exclusively incurred not only on advertisement or publicity outside India in respect of the goods, but also in obtaining information regarding the market outside India for such goods. The details of the nature of the services rendered by the local agents would go to show that the expenditure incurred by way of commission payment would fall under sub-clauses (i) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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