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2016 (10) TMI 1042 - AT - Income TaxDisallowance of commission expenses paid to two five foreign agents - evidences demonstrating rendering of services not submitted - Held that:- In the present case, we find that the assessee has quantified the expenditure, hence, to some extent fulfill expression “wholly”, but it fail to demonstrate how the expenditure was incurred for the purpose of business. This limb could be fulfilled, if the assessee had produced evidence of services rendered by the alleged commission agent. The ld.AO has recorded a specific finding that except producing certain invoices, the assessee failed to produce any other evidence. The payment through banking channel or raising of invoices are not the only requirement. The assessee should have produced some correspondence with the agents or how the agents have helped the assessee to procure the orders. There is no such material in the paper book. - Decided in favour of revenue Addition of commission expenses - Held that:- On due consideration of facts and circumstances, we are of the view that the ld.AO has not doubted rendering of services by these concerns. He simply observed that the assessee failed to submit details. That observation was found to be incorrect by the ld.CIT(A). The reason assigned by the ld.CIT(A) is that books of accounts of the assessee are audited. Details of agents were very much available, and the assessee has provided PANs. of these four agents. - Decided against revenue
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