Commissioner Of Income-Tax vs Hindustan Times Ltd.
1987 Latest Caselaw 201 Del

JUDGMENT

Ranganathan, J.

1. The question on which a reference is by the Commissioner is whether the Tribunal was justified in allowing the assessed a deduction of Rs. 95,811 paid by it as a special commission to Orient Investment Private Limited. It is common ground that the commission was paid in respect of property assessed under section 22 of the Income-tax Act, 1961. It is also common ground that the expenditure is allowable only if it falls within section 24(1)(viii) which allows a deduction in respect of "any sum spent to collect the rents from the property, not exceeding 6% of the annual value of the property". It is also common ground that the amount incurred by the assessed fell within the ceiling above mentioned.

2. Both the commissioner of Income-tax (Appeals) and the Tribunal have given a concurrent finding that the commission was paid in order to enable the assessed to collect the rent. The agreement between the assessed and Orient Investment Private Limited was entered into in somewhat exceptional circumstances. The Commissioner of Income-tax has discussed it at length and he has pointed out the various services which were rendered by the Orient Investment Private Limited as a result of which the assessed was able to get enhanced rent for the property and also able to realise it periodically without difficulty. Though counsel for the Commissioner of Income-tax contends that the payment was not related to the actual collections, it has been found that it was paid actually on the amount of license fees received and also graduated according to the license fee whether it was in excess of Rs. 3.60 per sq. ft. or less.

3. The finding of the Tribunal is a finding of fact and are, therefore, of the opinion that no question of law arises of which a reference is called for. The petition is dismissed. No order as to costs.