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2002 (11) TMI 22 - KERALA HIGH COURTBusiness Expenditure - Section 40A(2)(b) of the Act clearly provides for disallowance of amounts which the assessing authority considered to be in excess of the requirements of the business. The Assessing Officer in fact had limited the commission to 50 per cent. of the profit accruing to the company before the commission. The first appellate authority had considered the circumstances and limited the disallowance beyond 7 per cent. The Tribunal had also agreed with the view taken by the first appellate authority. On the face of the provisions of section 40A(2)(b) of the Act and the factual circumstances, we are of the view that the two appellate authorities were perfectly justified in limiting the commission to 7 per cent. as against 7.5 per cent. provided in the agreement. According to us, the conclusion reached by the Tribunal are based on findings of fact on which no substantial question of law much less any question of law arises.
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