9911796707
TMI Blog1983 (4) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... facturing drugs and chemicals. An addition of Rs. 76,705 has been made by the ITO mainly on the ground of certain papers found in the course of a search. The assessee company had entered into agreement with two other companies in respect of preparation of drugs. One of those companies was Unique Pharmaceutical Laboratories. The other was Juggat Pharma Pvt. Ltd. In the course of search, certain pap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the amount received by her, in fact, was the income of the company. There is no evidence at all linking the receipt of the commission with the assessee. The department is placing heavy reliance on the fact that recipient of the commission was the wife of the Managing Director and further that these amounts were in substance kickbacks and, therefore, direct evidence would not be available to prov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived any payments from these companies had surfaced. One could understand the absence of such evidence if the kick-back was an occasional feature. But, according to the case made out by the department, it is a regular running over the years right from 1970. Under these circumstances, one would have expected some sort of papers to be found in the course of the search would have indicated receipt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of s. 2(7) (c) of the Finance Act, 1977. The objection of the Department is on the ground that the assessee is not manufacturing any of the drugs but they get them manufactured by others. This identical ground raised by the department has been considered in the assessee's own case for the asst. yr. 1965-66 by the Bombay High Court. In their decision reported in (1982) 28 CTR (Bom) 223 : (1982) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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