( 1 ) IN this reference under Section 256 (1) of the Income-tax Act, 1961, for the assessment year 1976-77, the following question of law has been referred to this court :"whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in holding that the amount of Rs. 75,494 qualifies for deduction under Section 35b of the Income-tax Act, 1961. "

( 2 ) THE assessee claimed export markets development allowance in respect of expenditure of Rs. 8,16,274. According to the Income-tax Officer, these expenses included shipping expenses, bank commission, administrative expenses, salary, postage, etc. He held that except the expenditure of Rs. 1,30,500 incurred on account of foreign travelling, the assessee was not entitled to the allowance under Section 35b.

( 3 ) AGAINST the Income-tax Officer's decision, the assessee preferred an appeal to the Commissioner of Income-tax (Appeals ). Following the Special Bench order of the Tribunal on this issue, he held :"the first item of Rs. 97,942 relating to analysis, weighment, supervision charges, etc. , will be clearly inadmissible. Bank commission relating to the discounting of b