1989 (9) TMI 44

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....ivered by T. D.. SUGLA J. -There are two questions in this reference raised at the instance of the Department. The questions read thus : "(1) Whether the Income-tax Appellate Tribunal was, on the facts and in the circumstances of the case and in law, correct in treating the amounts of Rs. 63,432 and Rs. 38,592 being penalties levied for non payment of sales-tax within the prescribed time, as....

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....n the case of Jairamdas Bhagchand V. CIT [1988] 171 ITR 545, in favour of the Revenue. Accordingly, we answer the first question in the negative and in favour of the Revenue. The facts relevant to the second question are that the assessee has claimed an expenditure of Rs. 7,32,260 in connection with the export of 28,000 steel drums to a foreign party at Zambia. The amount was paid to Jalan Trad....

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....f drums, that Jalan Trading Company was not a benami concern of the assessee and that Jalan Trading Company had paid taxes on the income earned out of this transaction. In the absence of material justifying a finding that Jalan Trading Company was used as a benami, the Tribunal held that the entire claim of the assessee in this behalf was allowable as deduction. Dr. Balasubramanian, learned cou....