COMMISSIONER OF INCOME TAX Vs. MAHAVEER POLYMERS

JUDGEMENT

(1.) ON an application filed under Section 256(1) of the Income-tax Act, 1961, the Tribunal has referred the following questions for the opinion of this court :

(2.) THE relevant assessment year is 1985-86. THE year ended on December 31, 1984. THE assessee-company has shown an income of Rs. 2,76,511 during the relevant accounting year. During the assessment year in question, the assessee company has incurred an expenditure of Rs. 1,92,904 as the amount given to its selling agents on the sales made through them. THE Assessing Officer has invoked the provisions of Section 37(3A) holding that this expenditure is for sales promotion.

(3.) THE issue in question No. 3 relates to disallowance under Section 43B of the Act. Now the issue is concluded by their Lordships in the case of Allied Motors (P.) Ltd. v. CIT [1997] 224 ITR 677 (SC).