2001 (4) TMI 23

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....-tax Act, 1961, by the assessee, the Income-tax Appellate Tribunal has referred the following questions of law arising out of its order dated July 26, 1993, in I.T.A. No. 404/CTK of 1989 for our opinion: "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the secret commission paid by the assessee amounting to Rs.1,14,450 was not an....

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.... facts of the case may be briefly stated: The assessee is a partnership firm deriving income from manufacture and sale of tarpaulin to various departments of the State Government, State Government undertakings, semi Government bodies like municipalities, N.A.Cs. and also to the Central Government Departments. During the assessment year 1987-88, its sale amounted to Rs.9,59,576.14 against which ....

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....also expressed its inability to co-relate the payments with the orders procured or sales effected. In view of this, the Assessing Officer did not accept the claim of the assessee that the payments on account of commission to the agents were for business purpose and accordingly disallowed the claim as inadmissible. The assessee appealed to the Commissioner of Income-tax (Appeals), but without succe....

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....can be taken of such substandard morality on the part of the assessee. We need not examine the rival contentions in view of the recent amendment made to section 37 of the Act as per section 15 of the Finance (No.2) Act, 1998, which was brought to our notice by Mr. Ratho fairly. By the aforesaid amendment, the following Explanation has been inserted after sub-section (1) of section 37 with retro....