9911796707
TMI Blog2002 (7) TMI 805X X X X Extracts X X X X X X X X Extracts X X X X ..... e of the Revenue, the following questions are referred for our opinion in respect of assessment year 1974-75:- (i) "Whether, on the facts and in the circumstances of the case, the assessee is entitled to claim a weighted deduction under section 35B of the Income Tax Act, 1961 in respect of the aggregate commission payments of ₹ 53,320/- made to M/s. Bharatkumar Atmaram & Company and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and against the assessee by the decision of the Apex Court in CIT vs. Stepwell Industries Ltd. (1997) 228 ITR 171. On similar facts, the Apex Court held that when a middleman approaches the assessee for purchase of its goods for and on behalf of the foreign buyer and the assessee agrees to sell his goods, the middleman obtains the commission. But when the middleman is based in India, this does no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lways a question of fact and a question of degree. The nature of business of the assessee, the extent of replacement, the necessity for replacement and other relevant facts are required to be considered and the principles applicable for determining whether such expenditure could be regarded as capital or revenue expenditure will have to be applied. Keeping the aforesaid principles in mind, we hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f fact and we are satisfied that the Tribunal in arriving at the finding in the instant case has correctly understood and applied the legal principles for determining the character of expenditure to find out whether it is revenue or capital, to the facts of the present case. In view of the above, our answer to question No.2 is in the affirmative i.e. in favour of the assessee and against the reve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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