INSPECTING ASSISTANT COMMISSIONER OF INCOME TAX Vs. INDIAN ART EMPORIUM
LAWS(IT)-1994-6-10
INCOME TAX APPELLATE TRIBUNAL
Decided on June 10,1994

Appellant
VERSUS
Respondents

JUDGEMENT

L.N. Aggarwal, Judicial Member - (1.) THESE are two appeals filed by the Revenue against the orders of the Commissioner of Income-tax (Appeals) for the assessment years 1983-84 and 1984-85. Since the grounds of appeal are common, they are disposed of by a single consolidated order. The following grounds have been taken in the respective appeals :
(2.) Income-tax Appeal No. 3146/(Bom) of 1986 : (1) The Commissioner of Income-tax (Appeals) erred in allowing relief to the extent of Rs. 6,990 under the head "Sales promotion". (2) The Commissioner of Income-tax (Appeals) erred in deleting the addition of Rs. 90,000 made under Section 68 of the Act in respect of credits of Rs. 45,000 each appearing in the name of Shri Ranbir Mehra and Sudhir Mehra (Hindu undivided families). (3) The Commissioner of Income-tax (Appeals) erred in directing that the value to closing stock should be arrived at by allowing deduction of 55 per cent, as profit and bargain margin as against deduction of 45 per cent, given by the Inspecting Assistant Commissioner (Assessment). Income-tax Appeal No. 3147/(Bom) of 1986 : (1) The Commissioner of Income-tax (Appeals) erred in allowing relief to the extent of Rs. 10,220 under the head "Sales promotion". (2) The Commissioner of Income-tax (Appeals) erred in allowing interest of Rs. 10,125 on the alleged loans from Sudhir Mehra, Hindu undivided family, and Ranbhir Mehra, Hindu undivided family. (3) The Commissioner of Income-tax (Appeals) erred in directing that the assessee should be allowed deduction of 55 per cent, as profit and bargain margin as against deduction of 45 per cent, given by the Inspecting Assistant Commissioner (Assessment).
(3.) INCOME-tax Appeal No. 3146/(Bom) of 1986 : In this appeal, the first ground is regarding the relief granted by the learned Commissioner of INCOME-tax (Appeals) to the extent of Rs. 6,990 under the head "Sales promotion". The amount represented commission paid on the spot to various persons for bringing customers. The Inspecting Assistant Commissioner found that all these payments made in cash were unverifiable and hence disallowed the claim. The learned Commissioner of INCOME-tax (Appeals) although held that the payments were not verifiable, yet considering the past records of the assessee, the nature of the business and the argument advanced by learned counsel for the assessee, the disallowance was restricted to Rs. 5,000 and the relief of Rs. 6,990 was allowed. The Revenue being aggrieved has come up in appeal before the Tribunal.;


Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.