9911796707
TMI Blog1979 (2) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... 1969-70, relevant to the accounting periods ending 31st March, 1968, and 31st March, 1969, respectively, the shareholders of the company were three sons of Dhirat Ram, Dhirat Ram himself, Smt. Sudarshan Goel and L. Lachhmi Chand. The company appointed Messrs. Bharat Sales Corporation, Jullundur City, as its sole selling agents with effect from 1st April, 1957, by virtue of an agreement for a period of 10 years. The commission agreed was at the rate of 10 per cent. On 1st October, 1968, by subsequent agreements the commission was reduced from 10 per cent. to 7 1/2 per cent. for the sales effected with effect from 1st of April, 1968, to 30th September, 1968, and from 7 1/2 per cent. to 5 per cent for the sales effected with effect from 1st o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the conclusion that the questions sought to be referred are not questions of law refused the prayer of the assessee and, consequently, the assessee has filed two petitions referred to above under s. 256(2) of the Act praying for issuance of necessary direction to the Tribunal to refer the above-mentioned questions of law to this court for its opinion. Mr. Ashok Bhan, the learned counsel for the assessee, has contended that in the nature of the assessee's business, the appointment of sole selling agents and sub-agents was a genuine business necessity. The learned counsel on the basis of the figures of sales and commission in different years which are reproduced below contended that the ITO, the AAC and so also the Tribunal have not adop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sole agents and sub-agents was necessary. The learned counsel contends that the findings recorded by the authorities including the Tribunal that on the appointment of the sole selling agents the company did incur the expense, but the estimate of the expenses has been arrived at without any material on the record and without adopting the criteria based on the relevant material available on the record. The learned counsel with reference to the amount of commission as allowed by the department for the years 1966-67, 1967-68 and 1968-69 contends that the amount of commission allowed in the year 1969-70, when the sales had almost doubled from 1968-69, the commission was slashed to about 50 per cent. which was allowed in the preceding year, i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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