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2004 (10) TMI 73 - HC - Income TaxCommission paid to selling agents – Section 37 - "1. Whether Tribunal was legally justified in its opinion that the firms, M/s. Techno Sales Corporation and M/s. Kumar Wire and Conductors were not sole selling agents of the company and, therefore, the provisions of section 294(2) were not attracted? 2. Whether, Tribunal was legally correct in holding that the provisions of section 314(1)(b) of the Companies Act, 1956, were not applicable?" - As there is no dispute that some of the partners of the two firms are related to the directors of the company, the appointment of even selling agents amounts to holding an office of profit and is hit by section 314 of the Companies Act, 1956. - We answer the first question referred to us in the affirmative, i.e., in favour of the assessee and against the Revenue, and the second question in the negative, i.e., in favour of the Revenue and against the assessee.
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