TMI Blog2012 (2) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... rmises, conjectures or suspicions and is not rationally possible – Decided against the Revenue. - ITA 45/2012, ITA 1161/2011, ITA 1177/2011, ITA 1214/2011, ITA 8/2012 - - - Dated:- 16-2-2012 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R.V.EASWAR, JJ. For Appellant: Mr. Sanjeev Rajpal, Adv. For Respondent: Mr. Ajay Vohra with Ms. Kavita Jha Mr. Vijay Kumar Punna SANJIV KHANNA, J.: (ORAL) C.M. APPL. No.804/2012 (for exemption) in ITA No.45/2012 Exemption allowed subject to all just exceptions. The application stands disposed of. ITA 45/2012, ITA 1161/2011, ITA 1177/2011, ITA 1214/2011 ITA 8/2012 These appeals by the Revenue under Section 260A of the Income Tax Act, 1961, (Act, for short) pertain to the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erms and conditions of sales were stipulated by the Association of State Road Transport Undertaking. It is highlighted that the State Road/Municipal Transport Corporation/Undertakings have denied that any of the agents were allowed to procure orders, obtain amendments or arrange inspections and were involved with clearance of payment 4. In the assessment year 1998-99, the Commissioner of Income Tax (Appeals) had allowed the application filed by the respondent-assessee for additional evidence under Rule 46A of Income Tax Rules, 1962. The respondent-assessee had placed on record the new supply contract issued by the Association of the State Road Transport Undertakings, which included names of the agents. The CIT (Appeals) referred to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e agents. The tribunal noticed that the agreement refers to procurement of order as per the price and terms were already determined, postulates of follow up and other activities to be undertaken by the agent. The relevant clauses of the agreement read:- (i) To procure orders from State Road/Municipal Transport Corporation/Undertakings as per price and terms already determined. (ii) To commit delivery schedule on receipt of confirmation in writing from the assessee. (iii) To provide regular feedback on competitor s activates. (iv) To complete follow-up till realization of full payment as under :- (a) Realization of payment within 60 days from the date of bills. (b) Realization of all debit note for price difference/excise duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he agent, withdrawal etc. to verify the said aspects. The tribunal has observed that the prices were fixed pursuant to national competition bids. These bids were examined by the standing committee and accepted. The standing committee had fixed the rates and the standard terms and conditions. The supplies were, therefore, made as per the rates fixed by the standing committee of Association of State Road Transport Undertakings, who had not only approved the rate but also broadly approved the terms and conditions of supply. The tribunal after referring to the evidence on record, crystallized their findings :- We further find that the following facts are undisputed: - (1) None of the agents are related to the assessee. (2) Payments have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and establish nature of services actually rendered by various agents at different places throughout India. The order dated 25.2.2011 refers to a paper book filed by the respondent-assessee in support of his contention that the agents were interacting with the State Road/Municipal Transport Corporation/Undertakings. It was observed that there was no evidence or material, except suspicion or a surmise that the commission payment, in fact, represents illegal gratification paid to unknown officers and therefore, should not be allowed as a deduction. A factual decision is perverse if the authority has acted without any evidence or on a view of facts cannot be reasonably entertained. A perverse finding is one, if it is arrived at without any mate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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