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Section 35B, read with section 261, of the Income-tax Act, 1961 - Export market development allowance - Whether where view taken by High Courts on question relating to interpretation of section 35B(1)(b)(iv) was contrary to view taken by another High Court, case was to be certified as a fit one for appeal to Supreme Court for an authoritative decision - Held, yes FACTS Construing the provisions of section 35B(1)(b)( iv) the High Court took the view that, in order to get the benefit of weighted deduction, it is not necessary that the agent of the assessee outside India should act exclusively for the assessee. The commission paid to the agents outside India would amount to expenditure incurred by the assessee to maintain an agency outside India for the promotion of the sales outside India. On application under section 261, the revenue contended that the Karnataka High Court had taken a different view in Chief CIT v. Mysore Sales International Ltd. [1992] 195 ITR 457 and, therefore, it was necessary to have an authoritative decision of the Supreme Court on this question. HELD It was found that a contrary view had been taken by the Karnataka High Court. Therefore, this was a case where it was necessary to have an authoritative decision of the Supreme Court on the question relating to the interpretation of section 35B(1)(b)(iv ). Therefore, the case was certified as a fit one for appeal to the Supreme Court under section 261. Note : The decision was in favour of the revenue. CASES REFERRED TO Chief CIT v. Mysore Sale International Ltd. [1992] 195 ITR 457 (Kar.) and Srivilas Cashew Co. v. CIT [1992] 196 ITR 887 (Ker.). P.K. Ravindranatha Menon and N.R.K. Nair for the Petitioner. M.C. Sen for the Respondent. JUDGMENT This is an application under section 261 of the Income-tax…

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