DHOLPUR GLASS WORKS LTD. vs COMMISSIONER OF INCOME-TAX, DELHI AND — 1971 PTD 912

Citation: 1971 PTD 912

Court: Rajasthan High Court

Year: 1970

Decision Date: 1970-12-31

Parties: DHOLPUR GLASS WORKS LTD. vs COMMISSIONER OF INCOME-TAX, DELHI AND JUDGMENT

Headnotes

Case cited as 1971 PTD 912

Judgment Text

Court Name: Rajasthan High Court Judge(s): L. N. Chhangani, L. S. Mehta Title:DHOLPUR GLASS WORKS LTD. vs COMMISSIONER OF INCOME-TAX, DELHI AND JUDGMENT Reported As: 1971 PTD 912 Result: N/A Judgment JUDGMENT CHHANGANI, J.-This is a reference under section 66(1) of the Indian Income-tax Act, 1922 (hereinafter referred to as the Act), by the Income-tax Appellate Tribunal, Delhi Bench "B" by which the following question of law has been referred to us for our answer: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in disallowing the payment of Rs. 60,000 under section 10(2)(xv) and/or section 10(1)?" The material facts are these. The assessee is the Dholpur Glass Works Ltd., a public limited company (hereinafter referred to as the assessee-company), formed in the year 1946. By an agreement dated February 18, 1945, the assessee-company appointed the firm of Messrs Agarwal Brothers of Agra as its managing agents. Messrs Agarwal Brothers were to be paid managing agency commission equivalent to 12-- % of the not profits of the assessee-company besides office allowance of Rs. 1,000 per month. Initially the assessee --company started manufacturing commercial glasses which were not paying. The assessee-company earned small profits in the calendar years 1946 and 1947 and incurred losses in the subsequent three years. Profits for the calendar years 1951, 1952 and 1953 were negligible. In view of this, Messrs Agarwal Brothers relinquished their right…

Read the full judgment on Al Wakeelo — Pakistan's AI-powered legal research platform.