2019 (3) TMI 1110

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....dia i/b. Mr.Atul Jasani, Advocate for Respondent. P.C. : 1. The revenue has filed this Income Tax Appeal challenging the judgment of Income Tax Appellate Tribunal. Following question is presented for our consideration: "Whether on the facts and circumstances of the case and in law the Hon'ble ITAT was justified in deleting the addition made on account of compensation received on termi....

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....ld be chargeable to tax in terms of section 28(ii) (c) of the Income Tax Act, 1961 (for short 'the Act'). 3. CIT (A) allowed the Assessee's Appeal holding that there was no principal agent relationship between the parties and the contract was on principal to principal basis and therefore section 28(ii)(c) would not apply. In further Appeal by the revenue, the tribunal confirmed the ....

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....ayment due, the receipt of a person holding an agency in connection with the termination of the agency or the modification of the terms and conditions relating thereto, chargeable as profits and gains of business and profession. The essential requirement for application of section would therefore be that there was a co-relation of agency principal between the assessee and the US based company. In ....

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.... conclusive or determinative of relationship between the parties. The true character of the relationship from the agreement would have to be gathered from reading the document as a whole. This Court in case of Daruvala Bros. (P). Ltd. Vs. Commissioner of Income-Tax (Central), Bombay, reported in (1971) 80 ITR 213 had found that the agreement made between the parties, was of sole distribution and t....