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Issues Involved:
The judgment addresses two main issues: 1. Whether the assessee is entitled to claim deduction for presentation articles without advertisement value. 2. Whether the assessee can claim deduction for secret commission paid. Issue 1: Deduction for Presentation Articles The assessee, involved in wholesale business of cotton bales and earning commissions, claimed deduction for presentation articles. The Assessing Officer disallowed the claim under rule 6B. However, the Tribunal allowed the deduction based on a previous court judgment. Subsequently, another court decision shifted the burden to the assessee to prove the lack of advertisement value in gift articles. As the assessee failed to discharge this burden, the Tribunal's decision was set aside, and the matter was remitted back to the Tribunal for reconsideration in light of the new court ruling. Issue 2: Deduction for Secret Commission Regarding the deduction claimed for secret commission paid by the assessee, the appellate authority and Tribunal allowed the claim based on past approvals. However, a retrospective amendment to the Explanation to section 37 intended to disallow such claims from April 1, 1962. Given this legislative change, past approvals could not be relied upon. The matter was sent back to the Tribunal to reevaluate the deduction claim considering the legislative amendment. In conclusion, the appeal was allowed on both issues, and the case was remitted back to the Tribunal for fresh consideration. No costs were awarded in this matter.
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