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Shiv Parkash Janakraj & Co. (P.) Ltd. vs Commissioner Of Income-Tax, ... on 27 September, 1977 cites

Commissioner Of Income-Tax vs Birla Gwalior P. Ltd. on 22 April, 1969

The submissions made by Mr. Awasthy are not wholly without force but we are of the view that the decision of the cash stands concluded against the revenue by a recent judgment of their Lordships of the Supreme Court in Commissioner of Income-tax v. Birla Gwalior (P.) Ltd. [1973] 89 ITR 266 (SC). In that case, the assessee-respondent was a managing agent of the National Bearing Co. Ltd. and Gwalior Rayon & Silk Manufacturing Co. As managing agent of the former company it was entitled to receive a commission of 12 1/2% per cent. on the net profits of the managed company together with a sum of Rs. 18,000 as office allowance. In the case of the latter company it was entitled to get an office allowance of Rs. 30,000 per year in addition to the agreed managing agency commission. In the relevant accounting years the assessee gave up the managing agency commission due from both the managed companies. It also gave up the office allowance due from Gwalior Rayon & Silk Manufacturing Company. The question arose whether the amounts given up could be regarded as income of the managing company or not. Regarding the amount of Rs. 30,000 representing the office allowance, it was held by the Tribunal that because of the sacrifices made by the assessee-company, the finances of the managing company improved subsequently as a result of which the assessee-company was able to earn more profits in the later years. On the the basis of this finding, the court held that the Tribunal was fully justified in coming to the conclusion that the expenditure incurred came within the scope of section 10(2)(xv) of the Act. With regard to the other matter, the court observed as under (page 270) :
Calcutta High Court Cites 21 - Cited by 104 - S Mukharji - Full Document

Commissioner Of Income-Tax, Punjab, ... vs Dr. Sham Lal Narula, Patiala on 31 January, 1962

Mr. Awasthy then relied upon Commissioner of Income-tax v. Dr. Sham Lal Narula [1972] 84 ITR 625 (Punj), for the proposition that where the rate of interest is specified, it must be deemed to accrue at the end of the year. That case is also distinguishable. Because the assessee in that case had been paid accumulated interest on the amount awarded by the Land Acquisition Collector as compensation to him, and the Division Bench clearly observed that the interest on the compensation amount was paid to the assessee in order to compensate for the loss of income which would have accrued to him year after year. The analogy of that case cannot be extended to the case of a loan advanced under an oral agreement.
Punjab-Haryana High Court Cites 37 - Cited by 71 - I D Dua - Full Document
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