9911796707
TMI Blog2007 (5) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... red the following question of law under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for the opinion of this court: "Whether, on the facts and in the circumstances of the case, the Inspecting Assistant Commissioner (Tribunal) is correct in law in holding that the commission and subsidy paid to the cane growers formed part of the purchase price of the cane and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d them as deductions under section 37(1) of the Act in computing its income for the two assessment years: 1985-86 Rs. 1986-87 Rs. Society commission Cane development subsidy 11,44,636 2,07,387 10,18,406 3,56,341 5. The assessee entered into an agreement with Jagat Jeet Industries Ltd., on July 22, 1981, for manufacture of Indian ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xed the royalty as income of the assessee. However, the Commissioner of Income-tax, acting under section 263 of the Act was of the opinion that the commission and subsidy were allowable, only under section 35C of the Act and since that section was not operative for expenditure incurred after February 28, 1984, that expenditure should not have been allowed under section 37(1) and the allowance by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the assessments made by the Inspecting Assistant Commissioner (Assessment) and directed him to make fresh assessments, after giving certain positive directions. According to the Commissioner of Income-tax, the commission and subsidy was allowable only under section 35C and not under section 37 of the Act since the Finance Act, 1984, by amendment of section 35C, had discontinued the tax concessi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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