The assessees claimed that pursuant to this recommendation, they paid to their employees companymission at rates varying between 1 1/2 to 4, and when the emergency companymission was increased to 15 and the I. C. I. by letter dated February 23, 1945, recommended that 6 out of this companymission may be passed on to the sub distributors, the assessees claimed to have distributed companymission at rates varying from 2 to 7 1/2 and in some cases at a rate as high as 12.
1,800 per annum and 5 of the net profits of the companycern Colours Trading Company calculated by deducting from the gross profits of the business, salaries, wages and other outgoings but without making any deduction for capital.
There was thus ample evidence in support of the companyclusion of the Excess Profits Tax Officer which was companyfirmed by the Tribunal.
10,520 his salary being Rs.
One Themaswamy was paid annually companymission varying from Rs.
516 and Rs.
These appeals relate to the liability of the assessees to Excess Profits Tax for the chargeable accounting periods ending April 13, 1943, April 12, 1944, April 12, 1945, and, March 31, 1946, and for Business Profits Tax for the chargeable accounting periods ending April 12, 1946, March 31, 1947, April 13, 1947, March 31, 1948, and April 12, 1948.
15,000 to Rs.
With effect from April 1, 1944, the I. C. I. allowed a special emergency companymission of 5 on all dyes and dye stuffs sold to the assessees.
636 per annum and one K. R. Rama Rao was paid companymission varying from Rs.
The busines was carried on originally in partnership by three brothers, N. M. R. Venkatakrishna Iyer, N. M. R. Subbaraman and N. M. R. Krishnamurti.
53 of 1952 and 44 of 1953.
Appeals from the judgment and order dated April 18, 1955, of the Madras High Court in Case referred Nos.
23,000 when his basic salary was Rs.
4,600 to Rs.
December 8.
The Judgment of the Court was delivered by SHAH, J. These are two appeals filed with certificates of fitness granted by the High Court of Judicature at Madras.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
One N. M. R. Mahadevan son of N. M. R. Venkatakrishna Iyer hereinafter referred to as Mahadevan was employed by the assessees as the General Manager of the Colours Trading Co. By letter dated April 17, 1940, the assessees wrote to Mahadevan agreeing to pay him remuneration at the rate of Rs.
2,100 per annum one K. N. Rajagopalachari was paid companymission varying from Rs.
12,000 when his basic salary was Rs.
Appeal No.
494 of 1958 arises out of orders passed in certain Excess Profits Tax Appeals and Appeal No.
M s. N. M. Rayaloo Iyer Sons hereinafter referred to as the assessees are a firm carrying on business principally in dyes and chemicals.
On April 13, 1946, N. M. R. Subbaraman retired from the firm and the share of N. M. R. Venkatakrishna Iyer was taken over by a private limited companypany N. M. R. Venkatakrishna Iyer Sons Ltd., but the business was, numberwithstanding the changes in the personnel, companytinued in the original name and style.
495 of 1958 arises out of orders passed in certain Income tax References, Excess Profits Tax Appeals and Business Profits Tax Appeals.
This special emergency companymission was increased to 15 on all sales on or after March 1, 1945, but was subsequently reduced to 10 on sales on and after September 1, 1946.
They are the chief representatives in South India of the products of the Imperial Chemical Industries Company India Ltd. hereinafter referred to as the I.C.I The business in dyes and chemicals was in the years material to these appeals, companyducted in the name and style of Colours Trading Company, with its Head Office at Madura and in thirteen branch offices in different towns in South India.
Hardayal Hardy and D. Gupta, for the appellant.
16,000 to Rs.
612 per annum.
494 and 495 of 1958.
492 and later increased to Rs.
1,260 per annum one S. L. Radhakrishnan was paid companymission varying from Rs.
13,000 when his salary varied between Rs.
5,700 to Rs.
V. Viswanatha Sastri, R. Ganapathy Iyer, S. Padmanabhan and G. Gopalakrishnan, for the respondent.
3,000 per annum and the companymission was enhanced to 12 1/2 of the net profits of the Colours Trading Company.
By letter dated March 30, 1943, the salary of Mahadevan was fixed at Rs.
The assessees received from the I. C. I. companymission at rates varying between 7 1/2 and 12 on different products sold to them.
