1984 (3) TMI 140

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..... e case of Amar Dye Chem. [IT Appeal No. 3643 (Bom.) of 1974-75]. The said conclusion of the ITO has been endorsed by the Commissioner (Appeals) on appeal filed by the assessee. The assessee has consequently come up in second appeal before us. 2. We have heard the representatives of the parties at length in this appeal. We very much regret to observe that while deciding the claim of the assessee for weighted deduction under section 35B both the authorities below have referred to the decision of the Special Bench in Amar Dye Chem.'s case which has nothing to do with the dispute involved in the present case. The correct matter deciding this matter is the Special Bench decision in the case of J.H. Co. v. Second ITO [1982] 1 SOT 150. 3. Co .....

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..... any expenditure specifying the conditions laid down in sub-clauses (i) and (iv) to (viii) will get the benefit of weighted deduction irrespective of whether the same was incurred in or outside India. The commission on foreign business was item 14 of the list prepared by the AAC which had been allowed in full by him and the said order was confirmed by the Special Bench. A later judgment of the Bombay Special Bench in G. Co. v. ITO [1983] 3 ITD 566 has already held that commission payment in India cannot be taken as a disqualifying factor and the payment made to third parties who brought the assessee and the foreign buyers together was admissible for weighted deduction (sic.) because it was because of the advertisement and publicity given b .....

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..... use (iii) the expenditure incurred for distribution, supply or provision outside India of such goods, services or facilities would be allowable if it is not incurred in India and does not relate to the carriage of goods to their destination outside India or on the insurance of such goods (wherever incurred). This would obviously imply that expenditure incurred outright an insurance is not admissible even though incurred outside the country. This is the interpretation placed upon this sub-clause by the Special Bench and the Jaipur Bench has placed contrary interpretation without giving any reason whatsoever for their conclusion. We accordingly, uphold the order of the Commissioner (Appeals) disallowing the assessee's claim for weighted deduc .....

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