Commissioner of Income Tax Vs. Naimla Textile and Finishing Mills Pvt. Ltd. - Court Judgment
|Court||Punjab and Haryana High Court|
|Reported in||(1981)23CTR(P& H)1|
|Appellant||Commissioner of Income Tax|
|Respondent||Naimla Textile and Finishing Mills Pvt. Ltd.|
- sections 80 (2) & 89 & punjab motor vehicles rules, 1989, rules 85 & 80: [t.s. thakur, cj, jasbir singh & surya kant, jj] appeal against orders of state or regional transport authority imitation held, a stipulation regarding the period of limitation available for invoking the remedy shall have to be strictly construed. that is because any provision by way of limitation is in the nature of a restraint on the remedy provided under the act. so viewed two inferences are clear viz., (1) sections 80 and 89 of the act read with rule 85 of the rules make it obligatory for the authorities making the order to communicate it to the applicant concerned and (2) the period of limitation for any appeal against the order is reckonable from the date of such communication of the reasons would imply..........year 1961-62 claimed a deduction of rs. 69,228 stated to have been paid as commission to messrs. textile processing agency, amritsar, for procuring business for the assessee. this amount was disallowed by the ito but, on appeal, the aac modified its order and allowed deduction of rs. 33,809, the amount actually incurred by way of expenses by messrs. textile processing agency, by way of business expenditure. the order of the appellate authority was confirmed by the tribunal. dissatisfied therewith the revenue got referred the following question for the opinion of this court :'whether on the cfacts and in the circumstances of the case, the amount of rs. 33,809 claimed by the assessee in the assessment for the year 1961-62 was an admissible deduction u/s 37(1) of the it act,.....
S. P. Goyal, J. - The assessee company during the accounting year 1961-62 claimed a deduction of Rs. 69,228 stated to have been paid as commission to Messrs. Textile Processing Agency, Amritsar, for procuring business for the assessee. This amount was disallowed by the ITO but, on appeal, the AAC modified its order and allowed deduction of Rs. 33,809, the amount actually incurred by way of expenses by Messrs. Textile Processing Agency, by way of business expenditure. The Order of the Appellate Authority was confirmed by the Tribunal. Dissatisfied therewith the revenue got referred the following question for the opinion of this Court :
'Whether on the cfacts and in the circumstances of the case, the amount of Rs. 33,809 claimed by the assessee in the assessment for the year 1961-62 was an admissible deduction u/s 37(1) of the IT Act, 1961.'
From the perusal of the statement of facts it is evident that the amount in dispute was, in fact, incurred as expenses by Messrs.i Textile Processing Agency. Even though the amount claimed to have paid by way of commission was disallowed because the contract of the Agency had come into being after the accounting year still it is not disputed that the assessee was bound to reimburse to the said Agency for the actual expenditure incurred by the latter. The assessee was, therefore, bound under law to pay the amount in dispute to Messrs. Textile Processing Agency and the said amount was, therefore, rightly allowed as business expenditure of the assessee. The question referred is accordingly answered in the affirmative, against the revenue and in favour of the assessee. No costs.