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5. During the assessment year, the assessee-company did not receive any advance from/or through the Textile Processing Agency to meet its financial requirements. It had to take a temporary overdraft of Rs. 1,08,168 from Messrs. National and Grindlays Bank Ltd., and it also raised loans from the market inasmuch as the amount of unsecured loans increased from Rs. 1,22,961 on March 31,1961, to Rs. 2,23,299 at the end of the accounting year 1960-61. Thus, according to the Income-tax Officer, the primary function was not actually performed by the agency and it was nut meant to be performed. He also found that the two important functions mentioned there were also not in fact performed by Messrs. Textile Processing Agency. It was found that the commission payable to Messrs. Textile Processing Agency was not determined strictly in accordance with the agreement. For these reasons and also in view of the fact that all the partners of Messrs. Textile Processing Agency were closely related to the director of the assessee-company, the Income-tax Officer held that the agreement was only a device for diverting the profits of the company to the directors or their relatives and he accordingly disallowed the commission of Rs. 69,228 paid to the Textile Processing Agency.