Assessee could be taxed only for the income that it has derived

These Income Tax appeals are filed by the Revenue aggrieved by the order passed by the Income Tax Appellate Tribunal, Cochin Bench allowing I.T.A. Nos. 428 & 429 of 2002 filed by the respondent/assessee concerning the assessment years 1997-98 and 1998-99. In the returns filed by the assessee, it was revealed that during the aforesaid years, the assessee had paid substantial amounts towards sales commission to M/s. Lovely Enterprises, Delhi for consignment sales. The Assessing Officer disallowed the claim, on the ground that the existence of such agent itself was in doubt. The first Appella...