9911796707
TMI Blog1978 (9) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... ding Corporation. By agreement dated July 21, 1953, the corporation agreed to act as the commission agent of the assessee. They were to establish letter of credit for each of shipments in advance, at prices which will adequately cover the cost of the sea-food packing, etc. They were to further advance ocean freight, insurance, import charges, storage charges, etc. They were finally to sell the products in the American market and to remit the full proceeds of the sales less all advances and the commission at 10% due to them, to the assessee-company rendering a detailed account of all sales and shipments separately. By a notification dated 24th February, 1966, the commission due to the agent was reduced from 10% to 7 1/2%. Shipments to the ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anta Trading Corporation. Considering the fact that out of the debit balance the Atlanta Trading Corporation had agreed to waive 50% of the loss incurred, the ITO took the view that the loss would only be a deduction in the commission payable by the assessee to M/s. Atlanta Trading Corporation. It was, therefore, of the view that the relief under s. 35B had to be worked out on the balance of the commission payable after deducting the amount waived by the corporation. Her ejected the assessee's contention that what was forgone was not commission but certain other items. On appeal by the assessee, the AAC found that the transaction in reality did not amount to a sharing of losses by the assessee and his agent, but that the assessee had been p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of law for our determination. " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that the Income-tax Officer was not justified in disallowing weighted deduction to the assessee, under section 35B of the Income-tax Act, 1961, on the sum of Rs. 1,22,824 forgone by the assessee's agent, the Atlanta Trading Corporation, and credited by the assessee to the sales account ? " Section 35B of the I.T. Act, in so far as it is material, reads as follows : " Export markets development allowance.--(1)(a) Where an assessee, being a domestic company or a person (other than a company) who is resident in India, has incurred after the 29th day of February, 1968, whether directl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices or facilities ; (v) preparation and submission of tenders for the supply or provision outside India of such goods, services or facilities, and activities incidental thereto ; (vi) furnishing to a person outside India samples or technical information for the promotion of the sale of such goods, services or facilities ; (vii) travelling outside India for the promotion of the sale outside India of such goods, services or facilities, including travelling outward from, and return to, India ; (viii) performance of services outside India in connection with, or incidental to, the execution of any contract for the supply outside India of such goods, services or facilities ; (ix) such other activities for the promotion of the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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