- (1.) 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 S. 35-B 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 made when glaring mistake of fact or law has been committed by the officer passing the order becomes apparent from the record. Rectification is not possible if the question is debatable. Moreover, the point which was not examined on fact or in law cannot be dealt as mistake apparent on the record. The dispute raised a mixed question of fact and law.;