1992 (7) TMI 38

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..... and considering the terms of the agreement between the assessee and M/s. ETAG in its entirety, the Income-tax Appellate Tribunal is right in law in concluding that the arrangement was not a device to defeat certain provisions of the income tax law ? 2. Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is legally correct in deleting the disallowances u .....

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..... eals disallowed some of the expenses incurred which were in the nature of entertainment and travelling expenses. The disallowance was on the basis that they were more than the permissible limit. The claim of the assessee was that the amounts received were reimbursement of expenses and the question of these being taxed will not arise the Income-tax Appellate Tribunal interpreted the agreement and .....

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..... ly incurred in the year of account in the performance of the duties of the respondent as selling agent. The Supreme Court clearly held that to the extent of the receipt representing reimbursement of the expenses the same were not taxable. It is only when there was surplus that the same should be taxed. In the present case, the Tribunal has held that the assessee received no sums in excess of the .....

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