COMMISSIONER OF INCOME TAX Vs. SOMANY PILKINGTON LIMITED

JUDGEMENT

(1.) THIS is an application by the CIT, under S. 256(2) of the IT Act, 1961 (for short, "the Act"), seeking a direction to the Tribunal, Delhi Bench 'D', Delhi, to refer, the opinion of this Court, the following questions of law for the asst. year 1981 82:

(2.) THE assessee claimed deduction under S. 35B of the Act on expenditures amounting to Rs. 1,54,152. The AO allowed deduction in respect of export promotion expenses amounting to Rs. 84,026 only and disallowed deduction in respect of the other items of expenditure. Assessee went in appeal against the disallowance of deduction claimed under other heads of expenditure. The CIT (A) allowed deduction under S. 35B of the Act in respect of commission amounting to Rs. 59,556. The Department challenged the order of CIT(A) before the Tribunal. On a concession made by the counsel for the assessee, the Tribunal withdrew the relief of deduction granted by the CIT(A) on expenditures amounting to Rs. 50,535. Deduction claimed by the assessee, in respect of the commission amounting to Rs. 19,021 paid to foreign agency for arranging export was allowed by the Tribunal. It is this order of the Tribunal allowing deduction of Rs. 19,021 under S. 35B which is under reference.

(3.) SUPREME Court in CIT vs. Stepwell Industries Ltd. and Ors. (1997) 142 CTR (SC) 345 : (1997) 228 ITR 171 (SC), has observed as under :