Law:

Section:

Section 256 of the Income-tax Act, 1961 - Reference - Question of fact - Assessee paid commission to a company in order to collect rent of its property, which was assessable under section 22 - On facts, Tribunal found that aforesaid commission was paid in order to enable assessee to collect rent and, therefore, was allowable - Whether finding of Tribunal was a finding of fact and no question of law arose - Held, yes Facts The assessee paid special commission to a company in order to collect the rent of its property, which was assessable under section 22. The assessee claimed deduction of the said commission paid under section 24(1)(viii). The Commissioner (Appeals) pointed out the various services which were rendered by the said company as a result of which the assessee was able to get enhanced rent for the property and also able to realise it periodically without difficulty, and held that the commission was paid in order to enable the assessee to collect the rent and, therefore, was allowable. On appeal, the Tribunal gave a concurrent finding as that of the Commissioner (Appeals) and thus, upheld the assessee's claim. Further, the Tribunal rejected the application seeking reference. On an application under section 256(2): Held In the instant case, the finding of the Tribunal was a finding of fact and, therefore, no question of law arose out of which a reference was called for. D.K. Jain and D.C. Taneja for the Applicant. O.P. Vaish and S.K. Aggarwal for the Respondent. JUDGMENT Ranganathan, J. - The question on which a reference is sought by the Commissioner is whether the Tribunal was justified in allowing the assessee a deduction of Rs. 95,811 paid by it as a special commission to Orient Investment (P.) Ltd. It is common ground that the commission was paid in respect of a property assessed under…

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