2000 (12) TMI 30

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.... the instance of the assessee, the following questions have been referred for the opinion of this court under section 256(1) of the Income-tax Act, 1961 (in short, the "Act"), by the Income-tax Appellate Tribunal, New Delhi (in short, "the Tribunal"): "1. Whether, on the facts and in the circumstances of the case, the Tribunal is correct in holding that the payment of guarantee commission of Rs....

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....ne Shri Devi Chand Sawhney, a director of the assessee-company. The said guarantee commission was paid to him for having stood as guarantor as regards the loan taken by the assessee from the Punjab National Bank. Similarly, a sum of Rs.36,186 paid by the assessee as interest on arrears of cane purchase tax was disallowed. Both the disallowances were assailed in appeal before the Appellate Assistan....