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TMI Blog1990 (9) TMI 117X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the said benefit fully in respect of export sales commission while with regard to the other expenses he allowed only 90per cent thereof The Commissioner(A) observed, inter alia, as follows: " I have gone through the order of the ITO and I am of the view that he has rightly allowed weighted deduction on the items mentioned by him the assessment order This is in accordance with the decision of J. Hemchand Co. and s.35B after its amendment w.e.f. 1st April, 1981 However, the ITO has allowed weighted deduction at 90per cent of the expenditure This in the present case may not be warranted As stated above, the assessee is maintaining an export department which does not do any administrative work, purchasing or accounting However, there is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... commission. He argued that since the Commissioner(A) had the power to pass an order in respect of matters other than the ground of appeal before him the entire order of the ITO had merged in that of the Commissioner(A) and so no revisional order in respect thereof could be passed. He also argued that before the Commissioner (A) the ground of appeal was regarding the assessee's claim for deduction under s. 35B and that being so even the claim in respect of export sales commission was the subject matter of that appeal. 5. On the other hand, the learned Departmental Representative submitted that only that part of the order which was the subject matter of appeal before the Commissioner had merged relying upon the following decisions : 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... B(1)(b)(iv) which is as follows : "(iv) maintenance outside India of a branch, office or agency for the promotion of the sale outside India of such goods, services or facilities;" The question is whether it can be said that the assessee had incurred expenditure on maintenance of an agency, i.e., whether appointing an agent is maintaining an agency. We see no distinction between the two. There can be no agency without an agent and where there is an agent there is an agency. The learned Departmental Representative contended that the word 'agency' partakes its meaning from the other words which means that an office or a similar establishment must be kept by the assessee. We cannot agree with this because it is not an office which makes a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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