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TMI Blog1991 (7) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... ol (India) Ltd. vs. CIT (1991) 93 CTR (Bom) 237 : (1991) 187 ITR 25 (Bom) which is in favour of the Revenue, he cannot possibly dispute the disallowance made by the IT authorities. However, he hastened to state that since an SLP is pending in the Hon'ble Supreme Court on this issue, a direction may be given to the IAC(Asst) to allow the assessee's claim if the decision of the Hon'ble Supreme Court goes in favour of the assessee. The learned representative for the Department, on the other hand, supported the action of the IT authorities. According to him, no direction need be given to the IAC(Asst) as is in not known as to when the decision of the Hon'ble Supreme Court would be available. However, the assessee would be at liberty to approach ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er hand, once again supported the action of the IT authorities. 6. We have considered the rival submissions of the parties as well as perused the details of the fees paid to the aforesaid two parties and keeping in view the various orders of the Tribunal, which were cited before us, we find considerable force in the stand taken on behalf of the assessee that only Rs. 4,000 could be disallowed, while the balance amount has to be allowed under s. 37(1) of the Act. Since Rs. 4,000 is within the limit prescribed under s. 80VV of the Act, no disallowance is called for out of the fees paid to the aforesaid two parties. 7. The next issue pertains to the assessee's claim for deduction of Rs. 1,79,593 being the wealth-tax liability. Invoking the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to disallowance of Rs. 17,60,268 under s. 37(3A) of the Act in respect of commission of Rs. 84,92,372 paid to agents who brought orders. Relying on the orders of the Tribunal in the cases of Indian Hotels Co. Ltd. vs. IAC (1989) 34 TTJ (Bom) 526, IAC vs. Fulford (I) Ltd. (1989) 34 TTJ (Bom) 285; Mopeds India Ltd. vs. IAC (1984) 7 ITD 324 (Hyd) and ITO vs. Mira Co. (1986) 24 TTJ (Chd) 44 : (1986) 15 ITD 227 (Chd), the learned advocate for the assessee submitted that the provisions of s. 37(3A) of the Act ought not to have been applied by the IT authorities in respect of the commission paid to the agents. The learned representative for the Department, on the other hand, once again relied on the orders of the IT authorities. 10. We have co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... paid to the employees drawing more than Rs. 1,600 per month on the occassion of silver jubilee function. The learned advocate for the assessee submitted that since the bonus paid to there employees has been considered for working out disallowance under s. 40A(5) of the Act, the IT authorities were not justified in once again disallowing the same amount on the ground that these employees were paid additional bonus. He also submitted that since all the employees, both of the Junior and Senior Grades, were paid additional amount on the occasion of the celebration of silver jubilee of the assessee-company, the disallowance made over and above what was disallowed under s. 40A(5) of the Act was clearly bad in law. Relying on the decision of the H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be entitled to deduction in respect of contribution to recognised provident fund. Following our said decision we direct the IAC (Asst) to accept the assessee's claim for deduction in this regard and modify the assessment accordingly. 16. The next issue pertains to the treatment to be accorded to Rs. 60,26,333 being the cash compensatory support received by the assessee. The learned advocate for the assessee was fair enough to state that in view of the retrospective amendment made by the Finance Act, 1990 s. in 2(24)(vb) as well as s. 28 of the Act, he cannot possibly dispute the action of the IT authorities. He, however, hastened to state that since the assessee is challenging the amendment made with retrospective effect, there was no ju ..... X X X X Extracts X X X X X X X X Extracts X X X X
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