K. Shivashankar Bhat, J.—Under section 256(2) of the Income Tax Act, 1961, the following question was called for to be answered by this court :

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in upholding the order of the Commissioner (Appeals) directing the Income Tax Officer to consider the payment of commission to foreign agents as qualifying for weighted deduction as admissible under sub-clause (iv) of section 35B(1) without considering the fact that sub-clause (b) (iii) of section 35B of the Income Tax Act, 1961, has been omitted with effect from April 1, 1978 (sic) ?"

2. The assessee is an agent to effect sales of sandalwood oil and other goods manufactured by a public sector undertaking belonging to the State Government which is now known as Karnataka Soap and Detergents Limited.

3. For the purpose of effecting sales abroad, the assessee entered into certain agreements whereby sub-agents were appointed for different territories in foreign countries like the U. S. A. and Japan. The copies of the agreements produced before us show that the sub-agent is appointed for a particular period and, during the said period, the