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TMI Blog2017 (1) TMI 178X X X X Extracts X X X X X X X X Extracts X X X X ..... d expenditure Rs. 63,205/- as Commission on sales. Out of this amount, Rs. 52,895/- was paid to M/s Sir Enterprises, a Proprietorship concern run by Smt. Suraiya Rahi. The ld. ACIT disallowed the said expenditure of Rs. 52,895/-. The assessee had produced copy of account of said concern and various other documents to prove the actual incurring of the expenditure. It was also submitted that Smt. Suraiya Rahi, Proprietor M/s. Sir Enterprises is itself a regular Income Tax assessee. On request of appellant assessee, summons were also issued to Smt. Suraiya Rahi u/s 131 of the IT Act for appearance. However, Smt. Suraya Rahi did not appear and letter was filed under the signature of her husband Sh. M.A. Rahi stating that as the lady is Pardanas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade continuously to the proprietary firm which was also reflected in his reply filed before the assessing officer on 16.10.1991, 27.11.1991, 24.06.1992 and 25.9.1992 in spite of that the expenses allowed in the previous year. The CIT(A) in this regard held as under:- "It is the submissions on the part of the assessee that Mrs. Rahi was regularly assessed to tax by the I.T. Depertment on her commission income. The similar commission had been paid in earlier years and the same have been allowed as under: 1986 Rs. 52,318.04 1987 Rs. 68,870.19 1988-89 Rs. 52,895.04 Evidence of lady being assessed to tax was filed. It was also submitted that she was not related to any partners of the Firm. It was also urged that if Mrs. Rahi did not ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng as under:- "It is not open to the Revenue to accept that judgment in the case of the assessee in that case and challenge its correctness in the case of other assessees without just cause. For this reason, we decline to consider the correctness of the decision of the High Court in this matter and dismiss the civil appeal." 5.2 In case of Union of India vs. Satish Panalal Shah reported in 249 ITR 221 held as under:- "It is not open to the Revenue to accept that judgment in the case of the assessee in that case and challenge its correctness in the case of other assessees without just cause." 5.3 In case of CIT vs. Shivsagar Estate (S.C.) reported in 257 ITR 59 holding as under:- "Having regard to the fact that no appeal has been car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the facts can be gone into by the High Court only if a question has been referred to it which says that the finding of the Tribunal on facts is perverse, in the sense that it is such as could not reasonably have been arrived at on the material placed before the Tribunal. In the absence of such a question having been claimed, the High Court was obliged to accept the findings of fact arrived at by the Tribunal and then proceed to decide the question of law referred to it. Relying upon the two judgments of this Court in K. Ravindranathan Nair v. Commissioner of Income Tax, (2001) 247 ITR 178 (SC) and T. Ashok Pai v. Commissioner of Income Tax, (2007) 292 ITR 11 (SC), it was contended that the High Court exceeded its jurisdiction in coming to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to quantum of expenditure. The word 'exclusively' refers to motive, objective or purpose with which the particular expense has been incurred. Ordinarily, it is for the assessee to decide whether any expenditure should be incurred in the course of its or his business. Such expenses can be incurred voluntarily and without necessity. If it is incurred for promoting the business and to earn the profits, the assessee can claim the deduction." 5.8 In Commissioner of Income Tax vs. Dalmia Cement (B.) Ltd. reported in 254 ITR 377 held as under:- "Ordinarily, it is for the assessed to decide whether any expenditure should be incurred in the course of its business. Such expenditure may be incurred voluntarily and without any necessity and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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