COMMISSIONER OF INCOME TAX Vs. INTERNATIONAL EXPORTERS

JUDGEMENT

(1.) THIS is a reference under S. 256(1) of the INCOME TAX ACT, 1961, arising out of the asst. year 1974 -75, made at the instance of the Revenue, and seeking the opinion of the High Court on the following question of law :

(2.) IT is not disputed that the assessee is a firm carrying on business in the export of readymade garments, handloom clothes and handicrafts. The assessee claimed weighted deduction under s. 35B by reference to several items of expenditure. Each of them may be dealt with individually.

(3.) THE Tribunal did not deal with this item in detail but allowed the same in view of the Special Bombay Bench of the Tribunal having held it to be allowable. A copy of the order of the Special Bench in the case of J. H. & Co. is available in the paper book. Para. 28 of that order shows that the Special Bench had held the commission paid to parties who brought about the export sales allowable under sub -cls. (i) and (ii) without regard to the fact as to where it was incurred.