Shahzada Nand & Sons. v. CIT

Hero Motocorp Limited, New Delhi vs. JCIT, New Delhi

In the result appeal of the assessee in ITA No

Bench: Sh. I. C. Sudhir & Shri Prashant Maharishihero Motocorp Limited, Jcit, 34, Basant Lok, Vasant Range-1, New Delhi Vs. Vihar, New Delhi Pan: Aaach0812J (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community Vs. New Delhi Centre, Basant Lok, Vasant Vihar, New Delhi-110057 (Appellant) (Respondent) Dcit, M/S. Hero Moto Corp. Circle-11(1), Ltd., 34, Community

…s, as part of salary, in lieu of services rendered by them to the applicant and not with reference to their share of profits, is an allowable business deduction and will not fall within the rigors of section 36(1)(ii) of the Act: ShahzadaNand and Sons vs CIT: 108 ITR 358 (SC) - Hero MotoCorp Limited Vs. JCIT & DCIT Vs. Hero MotoCorp Ltd. ITA Nos. 1545/Del/2015 and 2424/Del/2015 (AY 2010-11) ITA No. 1609/Del/2016 and 914/Del/2016 (AY 2011-12) Page 235 of 484 AMD Metplast P. Ltd. v. DCIT: 341 ITR 563 (Del) - - CIT v. Bony Polymers Ltd.: ITA No. 1298/Del/2011 (Del) - DCIT v. Celsius Refrigeration P. Ltd.: ITA No. 4…

DCIT, New Delhi vs. M/S. Sara Services & Enginners Pvt. Ltd., New Delhi

In the results appeal of the assessee is partly disallowed on ground no

Bench: Sri C.M.Garg, Jm & Sri L.P.Sahu, Am Ita No. 406,407/Del./2010 Asstt. Year : 2002-03 Asstt. Year : 2003-04

…IT far from truth. Accordingly even the second argument of the Id. AO that the identity of the persons to whom the commission have been paid remains unverifiable is misplaced and erroneous as per the appellant. It is stated that in Shahzada Nand & Sons v CIT 108 ITR 358 (SC) the Supreme Court has held that it is not essential that the commission should be paid under a contractual obligation. It may be paid voluntary. But it must be for services rendered. The Bombay High Court in 188 ITR 1 in the case of CIT v Good lass Nerolac Paints Ltd. has held that where on the basis of facts and materials on record the Trib…

DCIT, New Delhi vs. M/S. Sara Services & Enginners Pvt. Ltd., New Delhi

In the results appeal of the assessee is partly disallowed on ground no

Bench: Sri C.M.Garg, Jm & Sri L.P.Sahu, Am Ita No. 406,407/Del./2010 Asstt. Year : 2002-03 Asstt. Year : 2003-04

…IT far from truth. Accordingly even the second argument of the Id. AO that the identity of the persons to whom the commission have been paid remains unverifiable is misplaced and erroneous as per the appellant. It is stated that in Shahzada Nand & Sons v CIT 108 ITR 358 (SC) the Supreme Court has held that it is not essential that the commission should be paid under a contractual obligation. It may be paid voluntary. But it must be for services rendered. The Bombay High Court in 188 ITR 1 in the case of CIT v Good lass Nerolac Paints Ltd. has held that where on the basis of facts and materials on record the Trib…

Sara Services & Engineers Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the results appeal of the assessee is partly disallowed on ground no

Bench: Sri C.M.Garg, Jm & Sri L.P.Sahu, Am Ita No. 406,407/Del./2010 Asstt. Year : 2002-03 Asstt. Year : 2003-04

…IT far from truth. Accordingly even the second argument of the Id. AO that the identity of the persons to whom the commission have been paid remains unverifiable is misplaced and erroneous as per the appellant. It is stated that in Shahzada Nand & Sons v CIT 108 ITR 358 (SC) the Supreme Court has held that it is not essential that the commission should be paid under a contractual obligation. It may be paid voluntary. But it must be for services rendered. The Bombay High Court in 188 ITR 1 in the case of CIT v Good lass Nerolac Paints Ltd. has held that where on the basis of facts and materials on record the Trib…

Sara Services & Engineers Pvt. Ltd., New Delhi vs. ACIT, New Delhi

In the results appeal of the assessee is partly disallowed on ground no

Bench: Sri C.M.Garg, Jm & Sri L.P.Sahu, Am Ita No. 406,407/Del./2010 Asstt. Year : 2002-03 Asstt. Year : 2003-04

…IT far from truth. Accordingly even the second argument of the Id. AO that the identity of the persons to whom the commission have been paid remains unverifiable is misplaced and erroneous as per the appellant. It is stated that in Shahzada Nand & Sons v CIT 108 ITR 358 (SC) the Supreme Court has held that it is not essential that the commission should be paid under a contractual obligation. It may be paid voluntary. But it must be for services rendered. The Bombay High Court in 188 ITR 1 in the case of CIT v Good lass Nerolac Paints Ltd. has held that where on the basis of facts and materials on record the Trib…

The Commissioner of Income Tax-Xiii vs. Sh. Kanwaljit Singh

…id under the non-compete agreement as business expenditure. However, under Section 36 (1)(iii), any amount paid as a bonus, or commission to be deductible, must only be made to employees. According to the SC decision in Shahzada Nand and Sons v CIT (1977)108 ITR 358 (SC) [approving Laxmandas Sejram v CIT (1964) 54 ITR 763(Guj)], the expressions „bonus‟ and „commissions‟ under this clause also include payments made under a contract. Thus, in this case it could be applied to the payments being made to the assessee under the NCA. What then follows, is that if the deduction is to be allowed, the assessee mu…

CIT vs. Cti Shipbroker India Pvt Ltd

…ecl perccntage of turnover is nrothing but assessable as salary. T'lttts, section 36 (I) (i, has got no apphcZfion. Ft*ther the contention of the ossessec is also duly sultltoriia uy ilte decision of suprente co-t*t in the cuse of sh;hja;; Ncmcl & snnr. v.cIT 108 ITR 358 in vthich the Apex court helrl thctt conrntission ltcritl to the entployees is allotpctble und there is no neecl.for uny contt'ctciuat obligation ot' cxtrct Se,t1ces perfornrcd by the (tssessee. " 'l'his courl noticcs that as far as other two grounds afe conccrncd, thc judgment of tlrcCorrrtinCI,l,l,.Bs'lSt|ctjdhaniPov,ersLtcl,(I.1.ANo.1266120|0d…

Commissioner of Income Tax vs. Expo Mecanique Marketing Pvt Ltd

Accordingly, the appeal, being devoid of merit, stands dismissed without any

…ssed the appeal preferred by the assessee. Aggrieved by the aforesaid order of the first appellate authority, the assessee preferred the appeal before the tribunal. The tribunal took note of the decisions rendered in Shahzada Nand and Sons v. CIT, 108 ITR 358(SC), Voltamp Transformers P. Ltd. v. CIT, 129 ITR 105 (Gujarat) and CIT v. Shri Ram Pistons and Rings Ltd., 181 ITR 230 (Delhi) and came to hold that the payment to a director depends on his experience and educational qualification and the payment of salary cannot be valued as in the case of goods and services. The tribunal further…