TMI Blog2001 (1) TMI 246X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) for asst. yr. 1992-93. The CIT(A) also confirmed the action of AO following the order passed by his predecessor for asst. yr. 1992-93. Aggrieved by the same, the assessee is in appeal before the Tribunal. 3. The learned counsel for the assessee has submitted before us that there cannot be any remission or cessation of the liability by unilateral act of the debtor. According to him, the liability continues to exist despite the unilateral act of the debtor though it may become unenforceable on account of limitation. Consequently, no addition can be made under s. 41. In support of his submission, he has relied on the judgment of Supreme Court in the case of CIT vs. Sugauli Sugar Works (P) Ltd. (1999) 152 CTR (SC) 46 : (1999) 236 ITR 51 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgments were delivered in different context and hold the different fields. In the case of T.V. Sundaram Iyengar Sons, the assessee had received certain amounts which were in excess of the sale price of goods supplied to its customers. It was these unclaimed credit balances, which were transferred to P L a/c. The Supreme Court held that such amounts were received in the course of trading transactions and, therefore, assessable when the assessee decided to transfer the same in the P L a/c even though these were not revenue receipts when the assessee actually received the same. The relevant portion of the judgment is quoted as below: "If an amount is received in the course of trading transaction, even though it is not taxable in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier judgment of the Supreme Court in the case of T.V. Sundaram Iyengar Sons Ltd. On the other hand, if the assessee had claimed deduction in respect of any trading liability or loss or expenditure in a particular year, then in any subsequent year, the assessee obtained the benefit by way of remission or cessation of such liability, then such benefit would be assessable under s. 41(1). However, unilateral action of the debtor transferring the same to P L a/c would not amount to remission or cessation of such liability and consequently, such amount would not be assessable under s. 41(1) in view of the later judgment of the Supreme Court in the case of Sugauli Sugar Works (P) Ltd. Since, in the present case, no details are available as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, the commission to be paid depended upon the period of time involved in collection of the price and sales-tax forms, etc. However, the CIT(A) was not convinced and consequently, the disallowance was confirmed. Aggrieved by the same, the assessee is in appeal before the Tribunal. 8. The learned counsel for the assessee has reiterated the contention which was raised before the CIT(A). In this connection, he also relied on the written agreement and pointed out that commission was payable at different rates between 2 to 5 per cent depending upon the period of collection of the invoice amounts. On the other hand, the learned senior Departmental Representative submitted before us that the copy of the agreement on which reliance is plac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 11. The next issue relates to the disallowance of 80 per cent of entertainment expenses for asst. yr. 1994-95. Both the parties are agreed that this issue is covered by the decision of this Bench in the case of Bharat Forge Ltd. vs. Dy. CIT (1995) 53 ITD 575 (Pune). Following the same, this issue is decided against the assessee. 12. The next issue for asst. yr. 1994-95 relates to part disallowance of conference and seminar expenses. After hearing both the parties, we find that this issue is covered by the decision of Special Bench of the Tribunal in the case of Lakhanpal National Ltd. vs. ITO (1999) 64 TTJ (Ahd) (SB) 128 : (1999) 69 ITD 9 (Ahd) (SB). Following the same, it is held that no disallowance can be made in respect of such ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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