- (1.) THE Tribunal, Allahabad has referred the following question of law under s. 256(1) of the IT Act, 1961, hereinafter referred to as "the Act" for opinion to this Court : "Whether, on the facts and in the circumstances of the case, the Hon'ble Tribunal was legally correct in holding that the expression 'maintenance of agency' meant an act of continuing the relationship of principal and agent in terms of s. 35B (1)(b)(iv) of the IT Act, 1961 -
(2.) THE present reference relates to the asst. yr. 1981 -82.
(3.) THE brief facts giving rise to the present reference are as follows : the Act on the income of Rs. 4,76,390. While completing the assessment, weighted deduction under s. 35B of the Act was disallowed in respect of payment of Rs. 2,47,015 to M/s Unad Cath Export (P) Ltd. Against this disallowance, the directed him to examine the allowability of deduction under s. 35B of the Act in the light of sub -cl. (iv) of s. 35B(1)(b) of but again, the deduction under s. 35B of the Act was disallowed as was done in the original assessment. The assessee, appeal and upheld the order of the AO. In second appeal, the Tribunal relying on its earlier order in the case of Kothari the addition of Rs. 82,338. We have heard Sri A.N. Mahajan, learned counsel appearing for the Revenue and Sri S.D. Singh, learned counsel appearing for the respondent -assessee.;