TMI Blog1982 (1) TMI 196X X X X Extracts X X X X X X X X Extracts X X X X ..... d those urged at the time of hearing. 2. The facts of the case briefly are that the petitioners who are manufacturers of electric fans sell their fans under the brand names of Bajaj and Kassels. The Bajaj brand fans are sold through M/s. Bajaj Electricals Ltd. who act as sole selling agents for Bajaj fans and the Kassels brand fans are sold through 5 regional distributors. The petitioners claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of India in the case of Jagjit Industries reported in 1978 ELT J 205 and contended that the agency commission given by them to Bajaj is admissible for deductions. Regarding the distributors discount of 8.5% given by them to five regional distributors, they have stated that there were trade discounts given in the normal course of business and are admissible for deductions. In support of this con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 1% agency commission on the sale of Kassels brand fans through the five regional distributors. The commission given to Bajaj Electricals Ltd. on the sale of Kassels fans through the five distributors could not be said to be in the nature of a trade discount. Under Section 4 only trade discounts are permissible for deduction. Government hold that the 1% commission which is in the nature of broker ..... X X X X Extracts X X X X X X X X Extracts X X X X
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