AJIT K. SENGUPTA, J.

( 1 ) IN this reference under Section 256 (1) of the Income-tax Act, 1961, the following question of law has been referred to this court for the assessment year 1977-78 :"whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in holding that, in order to be entitled to weighted deduction under Section 35b (1) of the Income-tax Act, 1961, it is not necessary that the assessee must export the goods or be an exporter and, in that view, remitting the matter to the Income-tax Officer for further enquiry ?"

( 2 ) SHORTLY stated, the facts are that Messrs. Project and Equipment Corporation of India Ltd. (hereinafter referred to as "pec") obtained a contract from a Dubai party for supply of distribution materials in kind of electrical equipment and, on its part, entered into a contract with the assessee-company for supply of these distribution materials to it. Under this contract, PEC was entitled to certain commission. For the assessment year under consideration, the assessee claimed weighted deduction under Section 35b of the Act on the commission of Rs. 6,87,575 paid to PEC. The Income-tax Officer, however, disallowed the ded

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