TMI Blog2008 (8) TMI 208X X X X Extracts X X X X X X X X Extracts X X X X ..... d by K. Gopal, for the respondent. JUDGMENT S. J. KATHAWALLA J. - The above appeals are filed by the Revenue impugning the common order dated 31 st October, 1999 passed by the Income-tax Appellate Tribunal, Mumbai Bench "C", Mumbai in Application No.266/Mum/1997 of the assessee under section 234 of the Income Tax Act, 1961, arising out of I.T.A. No.2870/M/95 and 711/Mum/96 for Assessment Years 1991-92 and 1992-93. 2. When the matters came up for final hearing, Mr. Vimal Gupta appearing for the appellant stated that though the appeals were admitted on two substantial questions of law, the appellant in both the appeals is pressing only one common question of law which is set out hereunder: " Whether the incentive commission pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication under section 254 of the Income-tax Act, 1961 before the Tribunal and Tribunal by its order dated 3 rd March, 1999 allowed the said application of the assessee arising out of the Tribunal's order dated 3 rd April, 1997. Thereafter the Tribunal by its order dated 21 st October, 1999 allowed the appeal of the assessee partly and deleted the additions which were earlier confirmed. (iv) The appellant (Revenue) being aggrieved by the Tribunal's order dated 21 st October, 1999 filed the above appeals, inter alia, contending that the Tribunal was not right in law in allowing the assessee's claim of incentive commission paid to its sister concern which was half per cent. more than the other subagents and which has been correctly disal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... charges paid to the sister concern at the rate of 9.5% have been considered to be reasonable and allowed. (iv) The sister concern of the assessee M/s Middle East International is also assessed to tax and income assessed for the Assessment Year 1991-92 is Rs.9,38,510/- and for Assessment Year 1992-93 is Rs.14,65,880/- and the said assessment orders have been placed on record. (v) Under the Central Board of Direct Taxes Circular No.6-P dated 6 th July, 1968 it is stated that no disallowance is to be made under section 40A(2) in respect of the payments made to the relatives and sister concerns where there is no attempt to evade tax. 5. In view of the aforesaid admitted facts we are of the view that the Tribunal was correct in coming ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
