| Case ID |
e1e437a5-ff09-46b1-b9ae-d0ef3fea7127 |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The Tribunal's decision that the tyre-cord manufactured by the assessee could be considered as an 'automobile ancillary' was upheld, confirming that there was no referable question of law from its order. The Tribunal justified the allowance of brokerage on sale, affirming that the genuineness of the payment was not disputed and that the only challenge was to its excessiveness without evidence of any extra commercial consideration. The court found no reason to direct the Tribunal to refer these questions, thereby discharging the rule with no order as to costs. |
| Summary |
This case revolves around the interpretation of the Income-tax Act, 1961, particularly focusing on the classification of tyre-cord as an automobile ancillary under the Fifth Schedule. The Bombay High Court upheld the Tribunal's decision, affirming that the tyre-cord indeed qualifies as an automobile ancillary, thus validating the Tribunal's assessment that no referable question of law arose from its order. Furthermore, the High Court supported the Tribunal's stance on brokerage payments, emphasizing that while the revenue challenged the excessiveness of the brokerage, they did not dispute its genuineness. The ruling highlighted the discretion of businesses in managing their operations and the normalcy of brokerage payments in commercial practices. The case cites the precedent set in CIT v. Nirlon Synthetic Fibres & Chemicals Ltd. [1981] 130 ITR 14 (SC). Keywords: Income-tax Act, tyre-cord, automobile ancillary, brokerage, Bombay High Court, Tribunal, commercial practices, legal interpretation, case law. |
| Court |
Bombay High Court
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| Entities Involved |
National Rayon Corporation Ltd.
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| Judges |
M.H. Kania,
Mrs. Sujata V. Manohar
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| Lawyers |
R.J. Joshi,
D.H. Mehta,
S.P. Mehta,
I.M. Munim,
S.J. Mehta
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
National Rayon Corporation Ltd.
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| Citations |
1992 SLD 1377 = (1992) 193 ITR 744
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| Other Citations |
CIT v. Nirlon Synthetic Fibres & Chemicals Ltd. [1981] 130 ITR 14 (SC)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
256,
33(1)(b)(B)(i),
37(i)
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