ORDER

Civil Appeal No. 7665/96

The following question of law was referred by the Tribunal to the High Court:

"Whether on the facts and in the circumstances of the case on a proper interpretation of Section 35-B of the Income Tax Act, 1961, the Appellate Tribunal was right in law in allowing assessee s claim for weighted deduction in respect of "Export Sales Commission" "E.C.G.C. Charges" and "Foreign Dealers Visiting Expenses"?

2. The High Court declined to call for a reference under Section 256(2) of the Income Tax Act, 1961. It appears that the claim for deduction under Section 358 was not originally allowed at all. Thereafter, on an assessee s application an order was passed by the Commissioner of Income Tax (Appeals), Jalandhar, in which he directed certain allowances to be given on proportionate basis after verification of the assessee s claim under Section 35B.

3. The Income Tax Officer thereafter entertained assessee s prayer for rectification of the order and allowed the assessee s claim in "respect of matters like Coloured Albums, Export staff travelling expenses, Export sales commission, E.C.G.C., foreign dealers visiting expenses. Rectification under Section 154 can only be m