2015 (9) TMI 855 - SCH - Income Tax

Allowability of commission expense paid to sister concern for its licence for importing furnace oil - Held that - As correctly held by HC 2013 (10) TMI 839 - GUJARAT HIGH COURT Sister concern since had a licence for importing the furnace oil, the assessee diverted its contractual obligation for averting the payment of damages, nothing comes on the record to explain as to how the sum termed as commission for performing the contract obligation was needed to be paid to the sister concern In the present case, appellant has failed to show as to how this amount of commission is compensatory in nature, which would entitle the appellant to avail the benefit of decision of Prakash Cotton Mills v. CIT 1993 (4) TMI 3 - SUPREME Court Decided against the Assessee. Allowance of expenditure for sending mangoes to one Narayan V. Thosar through Air Wings Held that - In the present case, no ground comes forth, nor there is any rationale for such huge business promotion expenditure incurred for supplying mangoes to a particular person, this authority will not come to the rescue of the assessee Decided against the Assessee.