COMMISSIONER OF INCOME TAX Vs. EXCEL GLASSES LTD

JUDGEMENT

(1.) BY these four Original Petitions filed under S. 256(2) of the IT Act, 1961, against the combined order of the Tribunal, the CIT requires us to direct the Tribunal to draw up a statement of the case and refer the following questions for the opinion of this Court : O.P. No. 23660/98

(2.) THE assessee-company claimed deduction of commission having been paid to M/s Aggarwal Trading Co., M/s B.K. Export Enterprises and Shri Joseph Sebastian. So far as the commission paid to Shri Joseph Sebastian is concerned, that case was accepted by the appellate authority and the Revenue filed an appeal before the Tribunal against that. Insofar as the commission paid to M/s Aggarwal Trading Company is concerned, the appellate authority allowed the commission only in part and, therefore, the assessee approached the Tribunal questioning the disallowance in part of the commission paid to M/s Aggarwal Trading Co., and total disallowance of commission paid to M/s B.K. Export Enterprises. The Tribunal upon considering the entire correspondence exchanged between the assessee-company and the agents and materials on record concluded that the agents rendered services to the assessee-company. It was clearly held by the Tribunal that M/s Aggarwal Trading Company procured orders for the assessee-company from parties and also assisted the assessee-company in securing payments from some parties.