Cit vs Rollatainers Ltd.
2007 Latest Caselaw 1319 Del

Citation : 2007 Latest Caselaw 1319 Del
Judgement Date : 18 July, 2007

Delhi High Court

Cit vs Rollatainers Ltd. on 18 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 ihe circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that commission of Rs. 12,62,103 paid by the assessed to agents/distributors, was not in the nature of expenditure on sales promotion under Section 37(3B), for making a disallowance under Section 37(3A) of the Income Tax Act, 1961 ?

2. A similar question of law arose in CIT v. High Polymer Labs (P.) Ltd. (IT Reference No. 34 of 1992, dated 5-7-2005).

3. In view of the decision rendered by us in that case which fully applies on the facts of this case, we answer the question in the affirmative, in favor of the assessed and against the revenue.

4. The reference is disposed of accordingly.

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