9911796707
TMI Blog1998 (8) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... yr. 1978-79, the assessee claimed weighted deduction under s. 35B of the Act in respect of the commission paid to the local agent of foreign buyers of the assessee's goods. That claim was disallowed by the AO, but was allowed in an appeal by the CIT(A). The Tribunal has affirmed the order of the CIT(A). 3. The details of the transaction are not available on record. In the order of assessment, it is stated that for the reasons discussed in detail in the assessment relating to the earlier assessment years, the claim for weighted deduction was rejected except to the extent of Rs 1,868 for expenses incurred abroad. The appellate authority, however even in the absence of any materials before him and without referring to the reasons, on which t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a similar claim for weighted deduction on the commission paid to a local agent of foreign buyers. The discussion in that judgment regarding this question is found at, p. 176 of 228 ITR and the same may be usefully set out : "The next question is whether the assessee is entitled to relief under sub-cl. (ii) of s. 35B(1)(b), sub-cl. (ii) speaks of 'obtaining information regarding markets outside India for such goods, services or facilities'. From the facts stated by the Tribunal, it appears that a middleman approached the assessee for purchase of its goods for and on behalf of the foreign buyer. The assessee agreed to sell his goods. The middleman obtained the commission. This does not amount to obtaining information regarding 'markets outsi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y affect the general price levels, the factors which may affect the shipment of goods within the time-frame and like information which would enable a seller or buyer to obtain the best advantage of the market. 6. Counsel for the assessee, however, contended that the commission paid does qualify for weighted deduction by placing reliance on the decision of the Kerala High Court in CIT vs. Kerala Nut Food Co. (1991) 192 ITR 585 (Ker) : TC 15R.467, wherein the Court had noticed the findings of the Tribunal that the agents concerned in the transaction had obtained information regarding markets outside India and they gave advertisement and publicity to the assessee's goods outside India, It was in that background that the Division Bench of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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