COMMISSIONER OF INCOME TAX Vs. KESHWANI J G

JUDGEMENT

(1.) THESE references made under Section 256(1) of the Income-tax Act, 1961 ( hereinafter to be referred to as "the Act" only), involved the following question of law :

(2.) IN these cases, the Tribunal, in view of the common facts and the question involved for the aforementioned four assessment years, has sent a consolidated statement of fact and, accordingly, all the four reference applications are being disposed of by a common judgment.

(3.) MR. Vidyarthi, learned counsel appearing for the Department, has submitted that in view of the facts and circumstances of this case, the amount spent by the company was nothing but commission paid to the assessee, which was spent in a substituted mode and, therefore, the expenditure by the company was a part of the remuneration received or accrued to the assessee and thus the same was liable to be assessed to income-tax. His further submission was that, as held by the Income-tax Officer on a true construction of the resolution dated January 25, 1972, and the background under which the same was passed, the only reasonable inference could be that it was a colourable device adopted at the instance of the assessee to avoid income-tax and if the transactions are construed in their true perspective, they clearly reveal that the amounts are nothing but the amounts of commission receivable by the assessee.