9911796707
TMI Blog1987 (6) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... he Income-tax Appellate Tribunal has referred the following common question of law in all the income-tax referred cases under section 256(1) of the Income-tax Act: Whether, on the facts and in the circumstances of the case, the commission payments made in India in respect of exports made by the assessees to the U. S. S. R. are entitled to weighted deduction under section 35B of the Income-tax Act, 1961 ? The original petitions are filed by the Revenue under section 256(2) of the Income-tax Act. The respondents in these original petitions are the assessees. They claim weighted deduction under section 35B in respect of commission payments made in India to various persons on exports made by them to the U. S. S. R. The claim was negat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t dated February 26, 1983. It was contended that the finding of the Appellate Tribunal to the following effect : It is a necessary indication that the agents render services to the exporters by obtaining information regarding markets outside India for their goods. When they give the trade representation, regular market reports like the raw cashew nuts real osition both in India and other producing countries, the price prevailing in all these sources of supply, the kernel's price on consultation with the exporters what the agents actually do is to give advertisement and publicity outside India in respect of the goods of the assessee and obtain information regarding markets outside India for such goods. These are services incidental ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... import different ingredients and in certain cases, and in particular, for obtaining relief under section 35B(1)(b)(ii), it may not be necessary to establish that the expenses were incurred outside India. For the purpose of disposing of these cases at this stage, it may not be necessary to adjudicate the correctness of the rival contentions put forward before us at this stage though the matter deserves a second look. Suffice it to say that, in the light of the contentions raised, we are satisfied that the three questions of law formulated by the Revenue in paragraph 7 of the original petitions do arise out of the order of the Appellate Tribunal. They are as follows : 1. Whether, on the facts and in the circumstances of the case, the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3255 and 3330 (Bom) of 1976-77, and the said decision has been accepted by the Revenue and a circular has been issued by the Central Board of Direct Taxes dated December 28, 1981, accepting the said decision in so far as the question of allowability of weighted deduction under section 35B of the Act is concerned. Mr. Balachandran further submitted that, in the light of the above Special Bench decision of the Appellate Tribunal and the circular of the Central Board of Revenue, instructions have been given to various Commissioners of Income-tax not to proceed with the cases raising similar questions. So, counsel submitted, that in these cases, in the light of the above Special Bench decision and the circular by the Central Board of Revenue, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to forward the statement of the case in these original petitions along with all necessary documents inclusive of the above Special Bench decision and the abovementioned circular as expeditiously as possible. In the light of the disposal of the original petitions, we have to consider the nature of disposal of the Income-tax Referred Cases Nos. 91 to 102 and 203 and .211 of 1984. he question referred to this court has been extracted hereinabove (paragraph 1). We are of the view that the question in the referred cases is rather vague or ambiguous and cannot be answered satisfactorily in the light of the contentions raised before us by counsel for the Revenue and also counsel for the respondents-assessees. It is agreed that the question ..... X X X X Extracts X X X X X X X X Extracts X X X X
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