1989 (2) TMI 99

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....KAL CHAND MITAL J. -The assessee, Kumar Engineers, appointed Kumar and Company, as their sole selling agent. The sole selling agent was to be paid commission at the rate of 6 per cent. on the orders procured by them. For the assessment year 1976-77, the assessee claimed deduction of commission paid to the sole selling agent but the Income-tax Officer disallowed it. He came to the conclusion that t....

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....iew the higher sales and other relevant factors came to the conclusion that 4 per cent. was reasonable and disallowed only 2 per cent. commission. Both sides filed applications for reference and the Tribunal, as would be apparent from para 5 of the statement of the case, agreed to refer one common question, so as to cover the controversy raised by both the sides and thus referred the following ....

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....982, nor did he claim recasting of the question. In this view of the matter, we proceed to decide the question as referred. I. T. C. No. 48 of 1982 is dismissed as not pressed. Whether the commission paid is reasonable or not is largely a question of fact and it has been so held by the Supreme Court in Upper India Publishing House P. Ltd. v. CIT [1979] 117 ITR 569 and by this court in Narain....