COMMISSIONER OF INCOME-TAX, WEST BENGAL vs ALUMINIUM CORPORATION — 1971 PTD 751

Citation: 1971 PTD 751

Court: Calcutta High Court

Year: 1970

Decision Date: 1970-12-31

Parties: COMMISSIONER OF INCOME-TAX, WEST BENGAL vs ALUMINIUM CORPORATION JUDGMENT

Headnotes

Case cited as 1971 PTD 751

Judgment Text

Court Name: Calcutta High Court Judge(s): K. L. Roy, P. B. Mukharji Title:COMMISSIONER OF INCOME-TAX, WEST BENGAL vs ALUMINIUM CORPORATION JUDGMENT Reported As: 1971 PTD 751 Result: question in the negative Judgment JUDGMENT P. B. MUKHARJI, J.--The question asked on this income-tax reference is as follows: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 1,56,806 was wholly and exclusively laid out for the purpose of business and as such allowable as a business expenditure?" The assessee is the Aluminium Corporation of India Ltd. Of 7, Council House Street, Calcutta. The statement of the case relates to the assessment year 1955-56, the corresponding previous year being the financial year ended on March 31, 1955. By an agreement dated December, 30, 1949, the assessee appointed Messrs J. K. Alloys Ltd. As the sole selling agent for selling its aluminium products. The agreement was effected for a period of 5 years from April 1, 1950. Under the terms of the agreement the selling agents were to receive the commission on all sales either effected by the agents themselves or by the principals directly. Clause 6 of the agreement states as follows: "That the principal will allow the agents discount in the manner, indicated hereunder on sale of all products of the principal effected by the agents either by themselves or through sub-agents appointed by them or directly by the principal themselves." Then follows…

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