COMMISSIONER OF INCOME TAX Vs. MODI PON LIMITED

JUDGEMENT

(1.) THIS is a petition in respect of the asst. year 1975 -76. The quessought to be referred by the petitioner is as follows :

(2.) A similar question had been raised and decided by the Tribunal in respect of the asst. year 1969 - 70 onwards. In the present case, the Tribunal followed its earlier decision for those years and it upheld the order of the CIT (A) and allowed the commission. In respect of the earlier years, the Department filed applications under S. 256(1) which were dismissed and then filed an application under S. 256(2) of the Act before the Allahabad High Court. Vide order dt. August 23, 1988, the Allahabad High Court, in I. T. A. No. 139 of 1986 (CIT vs. Modi Pon Ltd. (1989) 175 ITR 118) (All), in respect of the asst. year 1974 -75, declined to call of the question now proposed in this petition.

(3.) LEARNED counsel for the petitioner states that there is a distinction in the present case as the question involved related to disallowance of the sole selling agency. It will be seen that the disallowance pertained to the commission paid to Synfibre Sales Corporation. It was commission to the Synfibre Sales Corporation which was under consideration in the earlier years and merely because, in the present year S. 40A is mentioned in the proposed question it would not convert a question of fact into a question of law.