TMI Blog2020 (2) TMI 1284X X X X Extracts X X X X X X X X Extracts X X X X ..... nal is incorrect. Those clauses nowhere stipulates that the assessee is not bound to report to the agent any enquiry which may have received directly or indirectly. From reading of the agreement it is clear that no order can be processed by assessee without services the agent and if that is so, the assessee was bound to pay commission on any sale which was taken place in the territory of an agent (subject to condition 7 supra). In these circumstances, we hold that Clause (4) of the said agreement has wrongly been interpreted by the Tribunal in the facts and circumstances of the case. - ITA-222-2001 (O&M) ITA-223-2001 (O&M) - - - Dated:- 10-2-2020 - HON'BLE MR.JUSTICE AJAY TEWARI And HON'BLE MR.JUSTICE AVNEESH JHINGAN Ms. M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ointed agents in different parts of the world and all of those agencies had entered into an agreement with the asseessee-appellant which had the following clauses :- 1. That the Agent will book orders for the Products offered for sale by the Principal in the territories of UK and South East Asia. 2. That the Agent shall be responsible for getting the Letters of Credit opened by the Buyers in favour of the Principal for the orders booked by the Agent and Accepted by the Principal. 3. That the Agent shall be responsible for all payments and also getting the bills honoured, in time, as may be drawn by the Principal on the buyers. 4. That the Principal will redirect all enquiries received directly indirectly from the Buy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any dispute touching this agreement, the same will be referred to arbitration under the Indian Arbitration Act, then inforce and a decision of such of the arbitration will be binding on the parties hereto. 4. The conclusion of the Tribunal is that to justify the payment of commission the assessee had to prove in every case that the order had been obtained from the agent. While the contention of the assessee was that as per the agreement, the assessee was to pay commission on whatever sale was generated within the territory of the agent. The crucial clause in this regard is Clause 4 (supra). The Tribunal held that this clause would not supersede Clauses 1 to 3 and 5. 5. In our opinion, the interpretation of the Tribunal is incorrect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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