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2012 (12) TMI 195 - AT - Income TaxDisallowance of commission payment – CIT u/s 263 held that the order of the AO is erroneous and prejudicial to the interest of revenue - the assessee had incurred expenditure in the form of commission paid to various parties for services rendered during the course of sale of iron ore - All the commission payments were made through account payee cheques and tax was duly deducted at source from commission payments – Held that:-As the CIT though said in his order that there is no proper enquiry by the AO, he, instead of directing the AO to carry on further enquiry from the point where he has stopped, disallowed the entire commission payments. This is not proper. The CIT is required to cause enquiry himself regarding the genuineness of payments of commission or got it done from the AO. AO is directed to examine the entire issue and if he finds the assessee has incurred any commission payments wholly and exclusively for the purpose of business commensurate with the services rendered by the respective parties. Remand back to AO
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