Law:

Section:

Income tax Act (XI of 1922) S. 10(2)(xvi) Business expenditure Agreement between assessee and other parties showing object and intention of parties not to engage in joint venture for participation in profits but to avoid unfair compet1tion amongst themselves by agreeing to sell kerosene at a fixed minimum price and thereby ensuring larger profits for them Eelves Payments of sums made by assessee to other kerosene oil dealers and agents (parties to agreement) as their share of excess profits earned under such agreement Held, admissible deduc¬tion within meaning of S. 10(2)(xvf). Pondicherry .Railway Co., Ltd. v. Commissioner of Income tax Madras A I R 1931 P C 165; Commissioner of Income tax, Bombay v. C. Macdonald & Co. (1935) 3 1 T R 459; Indian Radio & Cable Communications Co. Ltd. v. The Commissioner of Income tax, Bombay (1937) 5 1 T R 270 and Union Cold Storage Co. Ltd. v. Adamson (1931) 16 T C 293 distinguished. Guest, Keer & Nedlefolds Ltd. v. Fowler (Surveyor of Trxes 5 T C 511; Grahamtson Iron Co. v. Crawford Surveyor of Taxes 7 T C 25 Commissioner of Income tax, Bihar and Orissa v. Sarbhanga Sugar Co. Ltd. (1957) 321 T R 64 and E. D. Sassoon & Co. Ltd. v.' Commissioner of Income tax, Bombay City (1954) 26 I T R 27 ref. JUDGMENT 1. MAHMUD, J. 'This is a reference under section 66(1) of the Income tax Act, 1922 by the Income tax Appellate Tribunal (Karachi Bench), Karachi on the application of the Commissioner of Income tax, Central, Karachi, of the following common question of law arising out of the consolidated order of the Appellate Tribunal dated 3.5 1968 relating to the assessment years 1961 62 and 1962 63: "Whether on the facts and in the circumstances of the case, the payments of Rs. 1,25,403, in the assessment year 1961 62 and of Rs. 1,07,585, in the assessment year 1962 63 were admissible deduction within the meaning of section 10(2)(xvi) of the Income tax Act?" 2. The respondent Moosa Umer & Company Ltd., a private limited company at the relevant time carried on business in Karachi inter alia as agents and dealers in kerosene oil supplied by the Burmah Shell Oil Company. In each cf the two years relevant to the charge years…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492