1988 (6) TMI 32 - HC - Income Tax

Summary

The court allowed the application under section 256(2) of the Income-tax Act, 1961. The dispute was about the deductibility of commission paid to Ganesh Sales Agency, owned by a partner's wife. The Income-tax Officer disallowed the claim, which was upheld by the Commissioner of Income-tax (Appeals) and the Tribunal. However, the Tribunal remanded the case to ascertain legitimate expenditure. The court directed the Tribunal to refer the question of law regarding the legitimacy of the expenditure incurred by Ganesh Sales Agency as a business expenditure.