TMI Blog1998 (1) TMI 517X X X X Extracts X X X X X X X X Extracts X X X X ..... the case, the Tribunal was justified in law in holding that the disallowances on the sales commission of ₹ 22,36,555 was unjustified ? 2. The assessee, Hindusthan Development Corpn. Ltd., is a public limited company and, inter alia, it carried on business of manufacture of Calcines Petroleum Coke (CPC). In the year under consideration the assessee has made the payment of commission of ₹ 22,36,555 to Industrial Services Centre (ISC). This commission has been paid on account of sales of the assessee's product. The sales had taken place at the instance of ISC. From records it appears that the firm ISC consists of two partners, Smt. Uma Jaipuria and Sri Ramakant Sureka. Both partners were summoned to find out whether any s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pies of the statements of Sri Sureka and Sri Jaipuria were supplied. The details of service rendered by ISC to increase the sale of product of the assessee and details of monthwise payment made by the assessee were furnished. Considering those details the claim of the assessee was allowed. The matter was then taken before the Tribunal and the Tribunal has also affirmed the view taken by the Commissioner (Appeals). The Tribunal found that the agreement was genuine, service has been rendered by ISC and even the sale has been increased after the agreement. The sale, in fact, increased from 12560 (M/T) to 20989 (M/T). 4. Thereafter, the department filed an application under section 256(1) for a reference of the question proposed and that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oner (Appeals). Those were considered and it was found as a matter of fact that services were rendered and commission has been paid for the services rendered by ISC. Whether any service has been rendered by ISC-basically it is a question of fact. A query was put by the Bench to the learned counsel for the department as to what type of evidence in such cases is required. No satisfactory answer has been given. In cases of sale promotion even sales can be procured on telephone if the purchaser is persuaded by the Agent. Not only that, there is a concurrent finding of the Commissioner (Appeals) as well as of the Tribunal, that service has been rendered by ISC and commission has been paid for that service. Merely, if some satisfactory answer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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