2018 (10) TMI 613

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....for the assessment year 1998-99. 2.This Appeal has been admitted on 05.08.2008, on the following Substantial Questions of Law: "1.Whether the Appellate Tribunal is correct in law in sustaining the disallowance of dealer's termination compensation in the computation of taxable total income even though such a decision was prompted by commercial expediency and approved by the Board of Directors with due process of law? 2.Whether the Tribunal is correct in law in sustaining the disallowance of the claim of reimbursement of advertisement expenses in the computation of taxable total income even though such a decision was taken on the compelling commercial reasons and fortified further by the facts placed on record? ....

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....o DEL is also erroneous. The Commissioner of Income Tax (Appeals), after examining the Board of Directors of both the companies, viz., the assesee and DEL, held that the Chairman of both the companies is the same person and he is the key person, who decides all issues in the assessee concern. The DEL is a closely held public limited company, in which, the major share holder is the Chairman of the assessee company and his family members and therefore, confirmed the factual finding given by the Assessing Officer that both the companies are closely connected concerns. 5.The sequence of events, which had occurred in respect of transfer of funds, was discussed and taking note of the dates, the Commissioner of Income Tax (Appeals), observed th....