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2008 (10) TMI 237 - HC - Income TaxCommission paid for obtaining contract – payment prohibited by law - assessee had inflated the steel purchases debited in its books and claimed it as an allowable expenditure. The assessee admitted that he had obtained the computation bills from steel vendors and, therefore, the assessments were reopened under sections 147 and 148 – assessee claimed that that it had paid commission in cash to the Mehta group who were allegedly instrumental in having the contract awarded to the assessee – held that - Tribunal has failed to consider the case in the light of the Explanation to sub-section (1) of section 37. Further, the Tribunal in its order dated July 8, 1996, has held that there was no loss caused to the Revenue inasmuch as the recipients of the commission had offered the said commission amount for payment of tax in their individual accounts and, therefore, the commission paid by the assessee ought to be deducted for the purpose of computing business income of the assessee – matter remanded
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