TMI Blog1991 (8) TMI 48X X X X Extracts X X X X X X X X Extracts X X X X ..... on of law is referred for our opinion by the Income-tax Appellate Tribunal, Cochin Bench : " Whether, on the facts and in the circumstances of the case, the assessee is entitled to weighted deduction in respect of the sum of Rs. 1,85,232 under section 35B(1)(b)(iv) of the Income-tax Act, 1961 ? " For the assessment year 1981-82, the assessee, a processor and dealer of cashew kernels, claimed b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enditure incurred by the assessee for maintaining an agency as contemplated under clause (iv). Aggrieved by the view taken by the assessing authority, the assessee filed an appeal before the Commissioner of Income-tax (Appeals). The appellate authority took the view that, in order to claim deduction under clause (iv), it is not necessary that the agent of the assessee outside India should act ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... agent shall do the business of the assessee exclusively. On the other hand, it was argued on behalf of the Revenue that the word "agency" takes its colour from the words "branch" and " office" (these words, in the context, can only mean the branch or office of the assessee manned by his servants) used in the section and, therefore, it should be given the same meaning and, if that be so, the relati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee is not entitled to claim deduction under section 35B(1)(b)(iv). We are not impressed by this argument. The word " agency " used in the section has acquired a clear and definite meaning both under law and in trade. The same meaning shall be attributed to the word in the section and not the meaning suggested by counsel for the Revenue. It is all the more so because the Legislature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rlance for the promotion of the sale outside India, of his goods, services or facilities. The commission paid by the assessee to the agents is the expense incurred by the assessee to maintain an agency outside India for the promotion of sale of the assessee's goods outside India. The assessee is, therefore, entitled to claim deduction in respect of the above payment under section 35B(1)(b)(iv) o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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