TMI Blog1991 (4) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act, 1961, pertaining to the assessee's assessment year 1962-63, the Income-tax Appellate Tribunal has referred to us the following questions of law for our opinion : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that secret commission, although disallowed in assessment proceedings for want of proof, has to be duly considere ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ratio was 33 : 37. The assessee claimed in its return that it had paid secret commission to one A. M. Khoparkar amounting to Rs. 29,934, which should be deducted from the taxable income while applying the provisions of section 104. The Tribunal came to the conclusion that, if this amount of secret commission is deducted from the distributable income, then the percentage of dividend distributed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ause (c) of section 40, (4) any expenditure claimed as a revenue expenditure but not allowed to be deducted as such and not resulting in the creation of an asset or enhancement in the value of an existing asset. " "(iv) 'gross total income' means the total income computed in accordance with the provisions of this Act before making any deduction under Chapter VI-A." For the purpose of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the view that the secret commission would have to be deducted for the purpose of determining the distributable income under section 104 of the Act. There is no dispute that, if such deduction is made, there is no liability under section 104 of the Act. We are fortified in our view by the judgment of the Supreme Court in the case of CIT v. Gangadhar Banerjee and Co. (P.) Ltd. [1965] 57 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X
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