TMI Blog1989 (2) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... ny, as their sole selling agent. The sole selling agent was to be paid commission at the rate of 6 per cent. on the orders procured by them. For the assessment year 1976-77, the assessee claimed deduction of commission paid to the sole selling agent but the Income-tax Officer disallowed it. He came to the conclusion that two of the partners of the assessee-firm were partners of the firm carrying o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent. was reasonable and disallowed only 2 per cent. commission. Both sides filed applications for reference and the Tribunal, as would be apparent from para 5 of the statement of the case, agreed to refer one common question, so as to cover the controversy raised by both the sides and thus referred the following question for opinion: "Whether, on the facts and in the circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceed to decide the question as referred. I. T. C. No. 48 of 1982 is dismissed as not pressed. Whether the commission paid is reasonable or not is largely a question of fact and it has been so held by the Supreme Court in Upper India Publishing House P. Ltd. v. CIT [1979] 117 ITR 569 and by this court in Narain Motors v. CIT [1979] 120 ITR 106. We have gone through the agreement of sole selling ..... X X X X Extracts X X X X X X X X Extracts X X X X
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