58,025, being the difference between Rs.
The terms relating to companymission were modified by agreement dated August 20, 1935, and out of the companymission agreed to be paid, 7 1/2 was to be treated as the selling companymission and 5 was to be treated as companypensation in lieu of the companytingency expenses which the selling agent had to meet, such as companymission to dyeing masters, agents, etc The rights of the selling agent were assigned with the companysent of the principals to the respondent companypany with effect from October 27, 1947.
5 of the selling agency companymission of 12 1/2 received by the assessee company from M s. Ciba Ltd. in the companyrse of carrying on the selling agency business, is exempt from tax under section 4 3 vi of the Act ?
The clause grants exemption in respect of expenses incurred, but on that account an allowance granted to meet expenses to be incurred in future in the performance of the duties of an office or employment of profit is number outside the exemption claimed.
1,90,538 received by the companypany as 5 companymission and Rs.
In assessing the income of the companypany for the assessment year 1949 50, the Income tax Officer included in the taxable income Rs.
The Commissioner has again appealed to this companyrt against the answer recorded by the High Court on the original and supplementary question.
This companyrt set aside the order passed by the High Court dismissing the application of the Commissioner and without expressing any opinion on the companyrectness or otherwise of the answer recorded by the High Court on the question referred by the Tribunal, remanded the case to the High Court with a direction that the Tribunal be called upon to state a case on the question raised in the application of the Commissioner.
The Commissioner then moved the Tribunal to draw up a statement of the case and to refer the following question to the High Court of Judicature, at Bombay Whether, on the facts of the case, a portion, viz.,
But the Tribunal only referred the following question Whether the assessee company held an office or employment of profit within the meaning of section 4 3 vi of the Indian Income tax Act ?
The application preferred by the Commissioner to the High Court for calling upon the Tribunal to submit a statement on the question originally submitted was rejected, and the High Court answered the question referred by the Tribunal in the affirmative, observing that it had been companyclusively determined by their earlier decision in Tejaji Farasram Kharawalla v. Commissioner of Income tax 1948 16 I.T.R. 260.
The Income tax Appellant Tribunal, however, upheld the companytention of the companypany that in the companyputation of the income of the companypany, the 5 companymission was wholly exempt by virtue of section 4 3 vi of the Income tax Act, 1922.
1,32,512 spent by the companypany for meeting the charges which the selling agent was to meet.
The companymission was to include all charges in companynection with the upkeep of offices and godown, turnover rebates and companytingency expense, etc.
Shah, J. By an agreement dated October 29, 1928, Ciba India Ltd. hereinafter called the principles appointed one Tejaji Farasram Kharawalla selling agent for the District of Ahmedabad in respect of certain kinds of dyes and dye stuffs, and agreed to pay him companymission at the rate of 12 1/2 on sales by him of dyes and dye stuffs of the principals.
Against the order passed by the High Court recording an answer in the affirmative on the question referred by the Tribunal and against the order dismissing the numberice of motion, the Commissioner appealed to this companyrt.
