TaxTMI 
TaxTMI 
1993 (9) TMI 39
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..... 1,64,342 was not exempt under section 10(14) and/or 16(v) of the Act in the hands of the assessee ? (2) Whether the Tribunal was justified in upholding partial disallowance to the extent of one per cent. on Rs. 1,64,342 and whether the said finding is reasonable ? At the instance of the Revenue: (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that even in the absence of any positive evidence the assessee should be allowed a deduction to the extent of 1 1/2 per cent. of sales through him as secret commission under sub-section (14) of section 10 or sub-section (v) of section 16 of the Income-tax Act, 1961 ? (2) Whether, on the facts and in the circumstances of the case, the findi....
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....spects of the case, the assessee was entitled to have deduction of one per cent. of the expenses incurred by him for paying secret commission to the employees of the various textile mills. The assessee filed an appeal against the said order and contended that his claim with regard to the amount of commission in full ought to have been granted by the Appellate Assistant Commissioner. The Department filed an appeal against the deduction of one per cent. commission of the sales through the assessee. After hearing both the parties, the Tribunal partly allowed the appeal filed by the assessee by holding that the expenses should be allowed at 1 1/2 per cent. of the sales made through the assessee. The Tribunal also partly allowed the appeal file....
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.... "The Tribunal has further held that in this particular trade of dye-stuffs and colour chemicals which are being sold to the textile mills it is the usual practice to pay secret commission to dyeing masters, printing masters, etc., in order to secure orders and in order to see that the supplier concerned increases his sales. The Tribunal has also held that the three employees of the assessee-firm were visiting the various mills with whom the assessee had dealings and were securing business from those different mills for the assessee-firm." The court further held: "So did the quantum of sales effected by the assessee-firm. Further, the finding of the Tribunal is that in this particular trade in order to maintain the level of business and ....
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....Ltd. v. CIT [1982] 137 ITR 58, held that it cannot, perhaps, be disputed that, in order to be entitled to deduction of pay ments to persons whose names are not disclosed, the assessee has to-- (i) establish the practice prevailing in that line of business for making such payments; (ii) adduce satisfactory evidence to establish the payments; (iii) satisfy the authorities that the payments were made for the purpose of business. It is further held that this would be a finding of fact and the court would normally decline to interfere with the view taken by the Tribunal. It is also held therein that the High Court would not interfere with the finding of fact unless such finding is perverse or is such that no reason able person can give such ....