Comnr.Incometax Banglore. vs K.C.P.Ltd.Vuyyur. on 1 May, 2018
With regards the judgment of the Supreme Court, in Velvet
Carpet & Co. Ltd. v. CIT, Allahabad74 on which reliance was
placed on behalf of the respondent-assessee, Sri J.V.Prasad,
Learned Senior Standing Counsel for Income-Tax, would submit
that the said decision is based on its own facts, and has not
considered the question that arises herein; that apart, the
provision extracted in the judgment would show that it is slightly
different in its wording i.e., "agent" is reflected, instead of "agency";
there is also no discussion regarding the nature of expenditure
that is allowable, under the provisions, in the said judgment; sub-
section (2) of Section 35B of the Act also acts as a bar; and, as held
by the Supreme Court in CIT v. Stepwell Industries Ltd.75, each
case must be examined in the light of the statutory provisions, and
the facts.