COMMISSIONER OF INCOME TAX Vs. R RAJENDRAN

JUDGEMENT

(1.) THE question referred to us which is common for the assessment years 1975-76, 1976-77 and 1977-78 which question has been referred at the instance of the Revenue is :

(2.) THE assessee during these years was working as the regional sales organiser of Kunal Engineering Company Limited. Besides salary paid to him he was also given sales commission which was on volume of sales effected by him. THE assessee claimed that the expenses incurred by him for earning the commission should be allowed as a deduction. That claim was negatived by the Assessing Officer. That disallowance was upheld by the Commissioner. THE Tribunal, on further appeal, held that in principle the assessee was entitled to deduction and remitted the matter to the Assessing Officer to verify the claim of the assessee with reference to vouchers, etc. THE Tribunal did so even after holding that the commission is salary and taxable under the same head.