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TMI Blog1991 (1) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... t year 1981-82. Shortly stated the facts are that in the assessment framed by the Inspecting Assistant Commissioner (Assessment) for the assessment year 1981-82, he allowed weighted deduction under section 35B of the Incometax Act, 1961, on several items of expenditure including the expenditure of Rs. 92,326 incurred by the assessee-company on payment of commission to overseas agents for export ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 35B on the commission paid to foreign parties. Being aggrieved, the assessee took the matter before the Tribunal. The Tribunal, on a consideration of the facts and circumstances of the case, held that the expenditure incurred by the assessee-company in the instant case falls under clause (iv) of section 35B(1)(b) and, accordingly, it was allowable. On these facts, the following questions of la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal was correct in law in cancelling the order of the Commissioner of Income-tax passed under section 263 of the Income-tax Act, 1961 ?" Section 35B(1)(b)(iv) provides that export markets development allowance should be allowable if such expenditure is incurred wholly or exclusively on maintenance outside India of a branch, office or agency for the promotion of the sale outside India of such g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view that the expenditure incurred on payment of commission to the Indian company did not fall under sub-clause (iv). The facts in this case are, however, different. The Tribunal found in this case that the expenditure was incurred by the assessee-company on maintenance of the agency outside India for promotion of sale outside India of goods which the assessee "deals in". It will appear from the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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