1990 (12) TMI 172

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..... 1,60,407 (2) Sales Commission Rs. 11,97,629 Asst. yr. 1985-86 . (1) Sales discount Rs. 1,16,756 (2) Sales commission Rs. 12,085,517 2. Subsequently, invoking the powers vested in him by and under s. 263 of the ITA, 1961, the CIT, Madurai called for and examined the assessment records of the assessee. On such an examination he found that the provisions of s. 37(3A) were applicable to the said payments; that the Assessing Officer failed to apply the provisions of the said section to such payments; and that consequently the assessment orders were erroneous in that they were prejudicial to the interests of the Revenue. He accordingly called upon the assessee to state their objections in this regard. 3. The assess....

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.... Ltd. vs. First ITO (1990) 33 ITD 209 (Bom) and (ii) Hindustan Times Ltd. vs. (1990) 33 ITD 427 (Del) and contended that the assessee are entitled to succeed. 8. On his part, Shri K.V. Ananthachari, the learned Departmental Representative, strongly supported the impugned orders of the CIT. Drawing our attention to the submissions made by the assessee in their letters dt. 11th Dec., 1987 and 3rd Feb., 1988 addressed to the Commissioner, Shri K. V. Ananthachari contended that the very onerous nature of the duties performed by the agents would indicate that this was a clear case of sales promotion. Similarly, the allowing of sales discount also promotes sales. Consequently, both the items of expenditure are square hit by the provisions of s....