2006 (10) TMI 502

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.... R. K. AGRAWAL J.- 1. Affidavit of service filed today be placed on record. 2. Both the appeals have been filed under section 260A of the Income-tax Act, 1961 (hereinafter referred to as " the Act" ), and pertain to the assessment years 1974-75 and 1977-78, respectively. 3. Sri Shambhoo Chopra, learned standing counsel for the Revenue, submitted that in both the appeals common substanti....

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....s observed that the reasonableness of the payment has to be judged not on any subjective standard of the assessing authority but from the point of view of commercial expediency. It has also been held that such payment was being made by the assessee in the past as well and there was such a practice in the industry as certified by the U. P. Chamber of Commerce. As already stated, the asses see is cl....

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....rsuant to the aforesaid order, the assessing authority, i.e., the Deputy Commissioner of Income-tax, Special Range I, Kanpur, made enquiries and found that the payments were genuine. However, he disallowed the claim under section 36(1)(ii) of the Act. Feeling aggrieved, the assessee preferred appeal before the Commissioner of Income-tax (Appeals), Kanpur, allowed the appeal and upheld the claim of....