COMMISSIONER OF INCOME TAX Vs. FARIDA PRIME TANNERY

JUDGEMENT

(1.) IN pursuance of the direction given by this Court, dt. 18th April, 1985 in TCP No. 244 of 1982, the Tribunal referred the following question for the opinion of this Court under S. 256(2) of the IT Act, 1961, hereinafter referred to as the 'Act'

(2.) THE question consists of two parts, the first part relates to service charges paid to State Trading Corporation on which weighted deduction under S. 35B of the Act was claimed. The second part relates to service charges and commission paid to local agents of foreign buyers on which weighted deduction was claimed under S. 35 -B of the Act.

(3.) INSOFAR as the second part of the question is concerned, it related to claim of weighted deduction under S. 35B of the Act with regard to commission paid to local agents of foreign buyers.