Disallowance of part of commission payment as business expenditure unjustified

Indian Hume Pipe Co. Ltd. Vs Commissioner of Income Tax (Bombay High Court) Bombay High Court held that AO and the Tribunal have allowed part of the commission payment as business expenditure. However, disallowance of part of commission payment as business expenditure unjustified. Facts- The Appellant is a limited company listed on the stock exchange and is engaged mainly in the business of manufacturing and sale of R.C.C. Pipes, Steel Pipes etc. which are required for water supply and drainage system. In the course of the assessment proceedings, the Appellant filed details of commission paid ...