TMI Blog1979 (3) TMI 79X X X X Extracts X X X X X X X X Extracts X X X X ..... es of pump sets etc. The assessee also wrote a letter dt. 17th Nov., 1972 to M/s Rattanlal Krishna Kumar. The assessee also produced evidence to show that really M/s Rattanlal Krishna Kumar did render service. The assessee also pointed out that payment of commission was made through cheque. The sum of Rs. 15,000 was received by M/s Rattanlal Krishna Kumar and they also disclosed this amount as their income in the previous year relevant to the asst. yr. 1974-75. The ITO taxed that amount in their hands. The learned ITO was not convinced with the explanation of the assessee. In his opinion the assessee was not entitled to claim expenses in question. So the learned ITO disallowed the claim. 3. The assessee took up the matter before the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same contentions were agitated which have been discussed above. According to the learned counsel a valid agreement was entered into between the parties. In pursuance of the agreement M/s Rattanlal Krishna Kumar rendered services. The assessee has furnished all the details of commission paid to M/s Rattanlal Krishna Kumar. Those details are at pages 7 to 9 of the paper book. The assessee made payment of Rs. 15,000 to M/s Rattanlal Krishna Kumar through cheque and the said payment was received by M/s Rattanlal Krishna Kumar. The learned counsel for the assessee further contended that entire evidence would go to show that the whole transaction was genuine and the commission was validly paid by the assessee. Thus it was contended that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted on the said agreement and rendered service as agreed to between the parties. So in law the agreement in question is valid. If there was any illegality in the agreement on the ground that it was not signed by any of the partners of M/s Rattanlal Krishna Kumar, the said illegality was cured because M/s Rattanlal Krishna Kumar acted on it. Apart from it, the letters dt. 14th Nov., 1972 and 7th Nov., 1972 clearly go to show that there was an agreement between the parties that M/s Rattanlal Krishna Kumar shall get commission on the sale of pumping sets etc. The assessee has also filed the details of the commission paid to M/s Rattanlal Krishna Kumar. In those details the date of the sale, bill number and name and address of the purchaser wer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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