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2020 (1) TMI 829 - GUJARAT HIGH COURTAddition on account of commission expense - deduction allowable u/s.37 - whether arrangement between the appellant and the commission agents is such that the commission agents are to provide details of potential customers as well as solicit the orders ? - ITAT deleted the addition - HELD THAT:- The appellate tribunal took the view that the CIT (Appeals) ought not to have confirmed the disallowance only on the ground that the only service rendered by the commission agents was that of introducing the potential customers to the assessee, which would not fall within the ambit of “Service” so as to make the claim of commission eligible for deduction under Section 37 of the Act. The tribunal takes the view that the commission paid to the persons for referring the names of the customers, is allowable under Section 37 of the Act for the purpose of introducing potential customers to the assessee and the same would fall within the ambit of “Service”. We are in agreement with the view taken by the appellate tribunal as regards the deduction available under Section 37 of the Act. We are of the view that the proposed question cannot be termed as a substantial question of law.
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