Law:

Section:

Section 256, read with 37(1) of the Income-tax Act, 1961 - Reference - Question of fact - Assessment year 1979-80 - Assessee paid secret commission to various parties - Details of sales transactions entered into with aforesaid parties were also available - Assessee had given a complete list showing turnover and amount of secret commission paid from year to year - Whether finding of Tribunal that assessee was entitled to deduction under section 37(1) in respect of amount paid as secret commission, was a finding of fact - Held, yes FACTS During the previous year relevant to the assessment year 1979-80 the assessee-company paid certain secret commission. The details of sales transactions entered into with various mill-companies in respect of which secret commission had been paid, were also available. The assessee had given a complete list showing the turnover and the amount of secret commission paid from year to year. The full details of payment on the above basis in respect of several parties were available. The assessee claimed deduction under section 37(1) in respect of the aforesaid amount of commission so paid. The department disallowed it. On appeal, the Tribunal held that the secret commission involved herein was an allowable deduction under section 37. The reference application of the revenue was also rejected. On an application under section 256(2): HELD In the instant case the findings of the Tribunal were purely findings of fact arrived at on the basis of good and cogent material and, therefore, no referable question of law arose from the Tribunal's order. CASE REVIEW CIT v. Goodlass Nerolac Paints Ltd. [1991] (1991) 188 ITR 1 (Bom.) followed and relied upon. CASES REFERRED TO First ITO v. French Dyes & Chemicals (I) (P.) Ltd. [IT Appeal Nos. 182 to 194 (Bom.) of 1982 dated 31-7-1984] and CIT v. Goodlas Nerolac Paints Ltd. [IT Reference No. 606 of 1976]. G.S. Jetly, Mrs. Manjula Singh and K.C. Sidhwa for the Applicant. J.I. Patel and B.V. Jhaverifor the Respondent. JUDGMENT Sugla, J. - This is an application by the department under section 256(2) of the Income-tax Act, 1961 ('the Act'). The question sought to be referred as a question of law is:…

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