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2012 (4) TMI 403 - HC - Income TaxRevenue expenditure u/s 37(1) - Deletion of the addition made by the AO on account of commission claimed on payment to various agents in respect of sale of machinery – Revenue contested that seven buyers had stated categorically in their written responses that in the transactions of purchase made by them of the web offset printing machines from the assessee, no commission agent was involved – Held that:- For AY 2005-06 any amount paid by way of commission to persons in respect of these seven buyers cannot be regarded as business expenditure and the same would not be allowable as Revenue expenditure under Section 37(1) but as far as the other payments by way of commission are concerned, there is no evidence which has been produced by the Revenue – partly allowed in favour of revenue. Assessment Year 2006-07 – Held that:- No evidence from any of the buyers indicating that there was no commission agent between them and the assessee company - there is no material on record nor is there any other evidence which the Revenue could produce to indicate that the commission paid to the commission agent was not genuine – against revenue.
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