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TMI Blog2015 (7) TMI 296X X X X Extracts X X X X X X X X Extracts X X X X ..... he Government to ensure that the contract was awarded to the assessee's principal, thereby suggesting that unfair means had been used for procuring the contract and the Commission had been paid for an unlawful purpose?" 2. The factual position would appear to be brought out in the Appeal memorandum of the appellant as follows: "3. Because the assessee filed an appeal before the Ld. CIT(A), Dehradun. The Ld. CIT (A) allowed the appeal of the assessee and held that "I have gone through the order of the AO and the submissions of the AR very carefully. According to the appellant, M/s Pharma Ventures approached the appellant company in helping M/s Pharma Ventures in getting the contract from the Ministry of Health. M/s Pharma Ventures vide its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii) Attend tender meeting. iv) Will do day to day follow up on behalf of M/s Pharma Ventures till the order is finalized. v) Help the appellant in getting the inspection, release of dispatch clearance and collection payments. COMMISSION As discussed and agreed, we shall pay you a commission @ 13% of the total order value. The commission shall be payable only after receipt the award of contract, supply of goods and collection of payments. 3.5 As can be seen from above, M/s Tehri Steels Ltd. Appointed M/s K.P. Steels as their authorized liaisoning agent on the same terms and conditions mentioned above except that the commission payable to M/s K.P. Steels was to be 13% of the total value of the order. Finally, Ministry of Health and Famil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an illegal activity. Illegal activity is one which is prohibited by law. There is no infraction of any law and payments made for liaison work are considered legitimate business expenditure. Coming to the merits of the case, there can be, in my opinion, three possibilities, taking into account the entire facts and circumstances of the case." 3. Thus, in short, the respondent assessee was assured of 28% commission for doing liaisoning work to get the contract in favour of M/s Pharma Ventures International Private Limited. In turn, the respondent assessee paid 13% commission to M/s K.P. Steel Products (P) Ltd. for getting the contact and it is in such circumstances, the amount was claimed as revenue expenditure. The Assessing Officer took the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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