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TMI Blog2002 (11) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... y the first appellate authority. On the face of the provisions of section 40A(2)(b) of the Act and the factual circumstances, we are of the view that the two appellate authorities were perfectly justified in limiting the commission to 7 per cent. as against 7.5 per cent. provided in the agreement. According to us, the conclusion reached by the Tribunal are based on findings of fact on which no substantial question of law much less any question of law arises. X X X X Extracts X X X X X X X X Extracts X X X X ..... s of the appellant-company it had to collect information regarding selling process, quality of competitors' products, etc., from the market, get the best possible price for the appellant's products, fulfil export obligations of the appellant etc. In the assessment for the two years, i.e., 1994-95 and 1995-96, the appellant claimed deduction of a sum of Rs. 174 lakhs and Rs. 1,69,72,510, respectively, as commission paid to the KSEDC Ltd. based on the agreement. The assessing authority disallowed the commission to the extent of Rs. 1,05,00,000 for the assessment year 1994-95 and Rs. 80,00,000 for the assessment year 1995-96. This is by way of restricting the commission payment to 50 per cent. of the profit accruing to the company before commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se duty and sales tax and in respect of export sales, the commission shall be 1 per cent. of the FOB price and has to be paid to the KSEDC The contract was for a period of one year. Counsel on the basis of the terms of the agreement submitted that the commission provided was just and reasonable and that the assessing authority as well as the two appellate authorities were not justified in reducing the commission which will amount to altering the terms of the agreement. Counsel also submits that the assessing authority had accepted the commission provided in the earlier agreement. Sri P.K.R. Menon, learned senior Central Government standing counsel for the respondents, submits that as per the agreement entered into between the holding compa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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