TMI Blog2002 (9) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the assessment years 1978-79 and 1980-81?" in favour of the Revenue and against the assessee. - - - - - Dated:- 9-9-2002 - Judge(s) : R. JAYASIMHA BABU., K. RAVIRAJA PANDIAN. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J.-The assessee is a commission agent. It represents foreign principals, those principals being persons engaged in the manufacture of leather goods. The assessee assisted those principals in procuring leather from the local suppliers. The actual exports of the goods are made by the local traders or manufacturers in leather, and not by the assessee. The assessee claimed the benefit of section 35B of the Income-tax Act, 1961, more specifically sub-clauses (ii), (v), (vi) and (vii). Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r settlement of disputes between the principals and local suppliers which may arise with regard to the quantity and quality of materials supplied. The Tribunal did not find that any of these services would qualify for deduction under section 35B of the Act, and thus affirmed the view taken by the Commissioner, as also by the Assessing Officer who had rejected those claims. Section 35B(1)(b)(ii) refers to "obtaining information regarding markets outside India for such goods, services or facilities". The assessee was not obtaining information about markets outside India but, in fact, was obtaining information regarding market conditions in India, for the leather which the foreign principals of the assessee wanted to purchase. It was trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availability of ships. The court observed in that case that: "The assessee-firm is admittedly carrying on business as freight brokers and shipping agents. In the course of and for its business, it was necessary to collect information as to the places where goods are available for export from one country to another country and regarding the availability of ships. It is this type of information which the assessee furnishes to the ship-owners as well as to exporters of goods that enables the deals to be struck and the asses see gets brokerage or commission." The activity of the ship-broker as set out in the judgment would indicate that the activity extended beyond the shores of this country and was not one confined to identifying the expor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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