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2014 (12) TMI 173 - ITAT JAIPURAssessment u/s 153A – Additions towards payment of commission on sale or purchase to brokers - revenue contended that Whole gamut of raising bill for commission at the fag end of the year and receiving cheques from the assessee company for commission in the next year, is a make believe arrangement between the assessee company and these so claimed brokers to siphon off the profit to evade tax. - assessee submitted that the parties to whom commission have been paid have either confirmed directly to the department in response to notices U/s 133(6) or the appellant has filed confirmation from the parties concerned. Held that:- in the line of business, mostly goods is being sold through brokers on which commission is paid - Purchase also made through brokers, therefore, it requires to pay commission to the middle man who make available of goods from the market - assessee has submitted confirmations, PAN number, copy of return in some case copy of bank account with confirmations - on verification of confirmations, in all the cases TDS has been deducted by the assessee on commission - CIT(A) specifically mentioned commission paid to M/s SKT on purchase, who is dealing in Tissue paper, craft paper, card board and other types of boards etc., in A.Y. 2008-09 – assessee submitted that details of commission paid to it on purchases made by the assessee along with copy of bills, confirmations and bank statements of assessee company evidencing the payment of commission has been filed before the CIT(A) - It also filed copy of agreement dated 21/3/2007 between assessee and M/s SKT - the assessee had deducted TDS at ₹ 3,94,757 - the assessee had paid this commission in subsequent year to M/s SKT after deducting TDS - additions confirmed by the CIT(A) deserve to be deleted – Decided in favour of assessee.
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