TMI Blog1989 (1) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... is engaged in the business of distribution of cinema films. As per an agreement dated October 4, 1977, the assessee advanced Rs. 3,85,000 by way of deposit to the producers. By clause 19 of the agreement, the assessee was to be paid a commission of 25% of the net realisation of the picture and this commission had to be deducted from the monthly net realisation from the picture and thereafter the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n had accrued to the assessee as soon as the realisations were made. In that view of the matter, the assessee's income as commission was brought to tax amounting to Rs. 51,012. The assessee appealed to the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) held that the amount had been rightly brought to tax by the Income-tax Officer. On second appeal before the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etitioner as well as the Revenue. Admittedly, the assessee is following the mercantile system of accounting. 25% of the net realisations of each month accrued to the assessee. The Tribunal only followed the decision of the Supreme Court in E. D. Sassoon and Co. Ltd. v. CIT [1954] 26 ITR 27. There is no case that the amount advanced is unrealisable. The only case is that it is not appropriated in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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