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Question of law regarding deduction of commission paid to individuals for assessment year 1987-88. Analysis: The case involves the assessment year 1987-88 where the assessee, an exporter of Hand-tools, claimed deductions for commission paid to individuals. The Assessing Officer disallowed the claimed amounts, stating they were not genuine. However, the CIT(A) and the Tribunal disagreed, holding the commission paid was a genuine business expenditure. The High Court referred to previous judgments to support the deductibility of amounts paid as commission. It clarified that trade discounts and commissions are not wasteful expenditures but legitimate business expenses. The main issue to decide was whether the Tribunal's finding that the commission paid was a genuine business expenditure was perverse. The Tribunal's finding highlighted that the individuals to whom the commission was paid were established persons in the export trade and had declared their income. The Tribunal also noted that the commission paid was not related to any partners of the assessee-firm, and the revenue did not claim that the commission amount returned to the assessee. Therefore, the Tribunal upheld the CIT(A)'s decision that the commission paid was a genuine business expenditure. The High Court found no material indicating that the Tribunal's finding was vitiated or based on misreading. It concluded that the findings of the CIT(A) and the Tribunal were not perverse. Consequently, the question was answered against the revenue and in favor of the assessee.
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