2002 (7) TMI 28

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ibunal under section 256(1) of the Income-tax Act, 1961 (in short the "Act"). The question of law involved herein is- "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the commission paid to the agents on actual sales cannot form sales promotion expenses? 2..." The assessee is a limited company. While framing the assessment o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....High Court in the case of CIT v. Sutlej Cotton Mills Ltd. [1992] 194 ITR 66, the Tribunal held that the commission paid on actual sales cannot form sales promotion expenses. The above question of law has arisen in the context of section 37(3A) of the Act which reads as under: "37. General.-... (3A) Notwithstanding anything contained in sub-section (1), where the expenditure or, as the case may ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....TR 884 and CIT v. Popular Automobiles Limited [1995] 212 ITR 611 has held that: "Sales promotion therefore would acquire an identical meaning to advertisement and publicity that is by providing certain incentives or taking certain other steps by which the product of the manufacturer could be popularised to promote the sale. That would not mean such amounts as are paid to a commission agent who ef....