COMMISSIONER OF INCOME TAX Vs. AMBIKA FORGINGS

JUDGEMENT

(1.) FOLLOWING question of law has been referred for opinion of this Court by the Tribunal, Amritsar Bench, Amritsar, in respect of asst. yr. 1987 -88 :

(2.) THE assessee is an exporter of hand -tools. Return declaring income of Rs. 3,82,990 was filed by the assessee on 31st amount of Rs. 3,33,652 to Shri Neeraj Goel, proprietor of M/s N.K. Rubber Industries, Jalandhar. Similarly, it was also found that the assessee had paid two cheques of Rs. 4,98,933 and Rs. 2,11,096 to M/s Punjab Rubber & Allied Industries, a proprietary concern of Shri B.M. Goel, who happened to be the father of Shri Neeraj Goel. The AO 1988.

(3.) THE CIT(A) and the Tribunal did not approve the said view and held that the commission paid was genuine business expenditure.