1999 (11) TMI 2

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... nd, therefore, the provisions of section 37(3A) have no application?" - The matter is now covered by the decision given in the case of CIT v. Srinivasa Textile Processing Ltd. wherein it was observed that "sales promotion" would have the meaning of "advertisement, publicity, i.e., by providing certain incentive or taking certain other steps by which the product of the manufacturer could be popular .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ve no application?" In the assessment the Income-tax Officer had disallowed Rs. 3,47,665. That was the amount the assessee had paid towards commission on sales. This had been treated as sales promotion expenses by the Income-tax Officer. The assessee had challenged this finding in appeal filed before the Commissioner (Appeals). The Commissioner (Appeals) held that the provisions of section 3 .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... icity, i.e., by providing certain incentive or taking certain other steps by which the product of the manufacturer could be popularised to promote the sale and would include the amount paid to the commission agent." In view of the above, we are of the view that the Tribunal is right in law in holding that commission paid on sales is not sales promotion expenditure, and, therefore, the provisions O .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X