Commissioner Of Income-Tax vs Dalmia Cement Ltd. (No.3)
1987 Latest Caselaw 374 Del

Citation : 1987 Latest Caselaw 374 Del
Judgement Date : 12 August, 1987

Delhi High Court

Commissioner Of Income-Tax vs Dalmia Cement Ltd. (No.3) on 12 August, 1987

Equivalent citations: 1988 173 ITR 91 Delhi

Bench: P Bahri, S Ranganathan

JUDGMENT

1. Three questions have been proposed on behalf of the Commissioner. In our opinion, question No. 2 is a question concluded by the decision of the Supreme Court in Kedarnath Jute Manufacturing Company Limited v. CIT [1971] 82 ITR 363 and for the same reasons as we have set out in ITC No. 89 of 1986 (CIT v. Dalmia Cement (Bharat) Ltd. (No. 2) [1988] 173 ITR 89 (Delhi)), which has been disposed of today, no reference of this question is called for.

2. So far as the first question is concerned, we direct the Tribunal to state a case and refer the following question for our decision for the reasons set out in our order of even date in ITC No. 89 of 1986 (CIT v. Dalmia Cement (Bharat) Ltd. (No. 2) [1988] 173 ITR 89 (Delhi)) :

"Whether, on the facts and in the circumstances of the case, there was any material before the Tribunal to hold that the payment of Rs. 3,34,000 to the field organisers was payment made for services rendered and constituted genuine business expenditure eligible for deduction ?"

3. So far as question No. 3 is concerned, again we think it is a question of law. We, therefore, direct the Tribunal to state a case and also refer the following question for the decision of this court :

"Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in holding that on a proper interpretation of section 40A(5), disallowance of RS. 2,43,365 could not be justified ?"

4. The Tribunal is directed to state a case and refer the above two questions for the decision of this court. This application is disposed of. No order as to costs.

5. We have disposed of by separate orders today also ITC No. 89 of 1986 (CIT v. Dalmia Cement (Bharat) Ltd. (No. 2) [1988] 173 ITR 89 (Delhi)), ITC No. 101 Of 1985 as well as ITC No. 141 of 1985 (CIT v. Dalmia Cement P. Ltd. (No. 4) [1988] 173 ITR 92 (Delhi)). Since the questions referred in these cases and in the present one are to some extent common, the Tribunal will be at liberty to make a consolidated statement for all the assessment years, if it is more convenient.