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2015 (8) TMI 1493 - ITAT KOLKATADisallowance being payment of commission which was duly supported by evidences - HELD THAT:- The strength of sales order is clearly done by the sales team who are moving in the market. These salesmen are the persons who try to arrange orders for the products of the principle. AO has called the director of the company only to record his statement by giving him notice u/s 131. It is quite possible that the company has various types of activities and working as commission agent is also a part and such companies work for many types of clients. Quite possible a director might not be aware of names and details of all the clients of the company. The AO should have enquired through the sales man of the commission agent or through the buyers of the products of the assessee in order to verify the actual commission given to M/s.Wide Angle Packaging System (P)Ltd for doing the sales on behalf of the assessee against commission. The assessee has paid commission by account payee cheque. Due TDS paid, identity of the commission agent is verifiable which are sufficient evidence on record to prove the genuineness of the transaction and creditworthiness and identity of the so called commission agent. The entire commission is allowable. This ground of appeal is allowed. Disallowance made by AO from 15% to 10% out of various revenue expenses - HELD THAT:- Looking into the nature of the expenses in which there is always a possibility to inflate the expenditure as well as expenses to some extent incurred for personal purposes also. CIT(A) has also restricted the disallowance from 15% to 10% in the interest of justice and as such find no infirmity in the order of the CIT(A). Thus this ground of appeal is dismissed.
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