2002 (7) TMI 9

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....r the assessment years 1979-80, 1981-82 and 1982-83, debited by the assessee under the head 'Business promotion expenses' expended to run the business smoothly and profitably by way of secret commission payments and other unvouched non-descript payments, such as tips/mamools/speed money, was not a deductible business expenditure under section 37(1) of the Act in computing the business income of the assessee? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in not following the binding decisions of the Madras High Court reported in CIT v. Coimbatore Salem Transport (P.) Ltd. [1966] 61 ITR 480; CIT v. Ramakrishna Mills (Coimbatore) Ltd. [1974] 93 ITR 49; CIT v. Sree Rajendra-Mills Ltd. [1974] 93 ....

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....ee is in the business of canvassing/contract agents for M/s. G.A. Vasanth Exchange. They claimed certain expenditure in the nature of sales promotion expenditure. They claimed various sums in the three assessment years with which we are concerned. The assessment years are 1979-80, 1981-82 and 1982-83. The assessee claimed pretty huge sums in the name of expenditure made for their sales promotion and claimed deduction on that count. That claim was accepted only in part by the Assessing Officer, the appellate authority and also the Tribunal. Some of these amounts were in the nature of mamools, etc., But, it is clear from the judgment of the Tribunal that, that part of the payments which were made by way of bribes (mamools), etc., have not bee....