Cit vs Chawla Plastics
2007 Latest Caselaw 1270 Del

Citation : 2007 Latest Caselaw 1270 Del
Judgement Date : 12 July, 2007

Delhi High Court

Cit vs Chawla Plastics on 12 July, 2007

Bench: M B Lokur, V Gupta

ORDER

1. In this reference under Section 256(1) of the Income Tax Act, 1961, the following question of law has been referred for our opinion:

Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal is right in law in holding that the expenditure on commission was not in the nature of sales promotion, as defined in Section 37(3B) for the purpose of disallowance under Section 37(3A) of the Income Tax Act, 1961?

2. We had decided a similar issue in CIT v. High Polymer Labs (P.) Ltd. (IT Reference No. 34 of 1992, dated 5-7-2007). For the reasons recorded in the case of High Polymer Labs (P) Ltd. (supra), the question referred to us is answered in the affirmative, in favor of the assessed and against the revenue.

3. The reference is disposed of accordingly.

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