2009 (6) TMI 25

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....greement with the agent? (2) Whether in the facts and circumstances of the case, payments made to third parties at the request of the agent, without any evidence of service having been rendered by the third parties can be treated as a business expenditure? 2. The assessee is a manufacturer of textile machine tools. The only issue is relating to payment of additional commission to M/s. Texind Corporation. The Texind Corporation is an accredited agent for sale of textile machineries. During the assessment year 1991-92, a sum of Rs.44,57,020/- was shown as payment of commission to M/s. Texind Corporation. Out of the said sum, a sum of Rs.9,13,247/- was shown as additional commission. Before the Assessing authority, the asseesee contended tha....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....commission in each case, the cheque No. and date of payment of each such amount. I find no justification for the disallowance of the claim. The addition of Rs.9,13,247/- is accordingly deleted. " 3. The Tribunal was pleased to confirm the order of CIT appeal, inasmuch as even in the earlier year, such a claim of additional commission came to be allowed which was also affirmed by the Tribunal. When we examined the reasoning of the Assessing Authority vis-a-vis the finding of the CIT appeal, we find that whatever reasons which has been given by the Assessing Authority for not allowing the additional commission came to be fully explained and satisfied before the CIT appeals with material particulars in the form of facts, figures and documents....