1985 (5) TMI 2 - HC - Income Tax

Summary

The High Court of Calcutta ruled in favor of the assessee in a reference under the Income-tax Act, 1961 for the assessment years 1963-64 and 1964-65. The court held that the Income-tax Officer was not justified in including 50% of the managing agency commission in the assessment. The court also ruled in favor of the assessee for the assessment year 1970-71 regarding the interpretation of section 80-0 of the Income-tax Act, 1961. The court found that the approval of the Central Government for the agreement with the foreign company was not required before the 1st October of the relevant assessment year. The court concluded that the assessee was entitled to relief under section 80-0 even though the approval was not obtained before the specified date. The judgment was agreed upon by both judges, and no costs were awarded.