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2019 (3) TMI 473 - AT - Income TaxExemption u/s 10(37) - Assessee has received compensation on compulsory acquisition of urban agricultural land - proof of land as used for agricultural purposes - HELD THAT:- The assessee filed copy of the sale deed which clearly described the impugned land to be agricultural land and used for agricultural purposes. At appellate stage, as per directions of the CIT(A), Certificate of Tehsildar was filed who has certified that at the time of acquisition of the land, the land was used for agricultural purposes. The assessee also produced Revenue record to show that land in question was used for agricultural purposes. Thus, sufficient material was produced on record to prove that at the time of acquisition of the land in question, the land was used for agricultural purposes. Thus, assessee satisfied the conditions of Section 10(37) of the Income Tax Act. Therefore, assessee’s income is exempt under the said provision - Decided in favour of assessee. Addition on commission payment - allowable business expenses - A.O. accepted 80% of the commission payment and disallowed 20% out of it - HELD THAT:- TDS have been deducted and commission agents have disclosed the commission income in their return of income. There is an increase in sales of the assessee in assessment year under appeal. The commission payment in the past have been accepted by the authorities below. It is also explained that on the same reason, the commission payment have been accepted in preceding A.Y. 2009-2010. These facts, therefore, clearly show that commission payment have been made to the Commission Agents who are unrelated parties and are identified. Genuineness of the commission payment is not doubted. Assessee proved that Commission Agents render services for business purpose of the assessee.- Decided in favour of assessee. Shortage in stock as found by RINL - A.O. noted that assessee is saddled with the consignment work as Agent (Handling Contractor) of RINL - proof of normal business transaction - HELD THAT:- The assessee has filed copy of the ledger account of the principal to show that there was opening balance in this account for the earlier year and that while settling the bills of the assessee for payment of handling charges, the principal has deducted amount in question from the final bill because of the normal shortage. The assessee is receiving handling charges and if during handling services principal has suffered loss on account of shortage and it has recovered from the assessee as is evident from the letter of RINL, the assessee would get a lesser payment. The amount in question have not been debited to the profit and loss account and has not been claimed as deduction by the assessee. Therefore, the same could not be disallowed by the A.O. since it is a normal business transaction and shortage is recovered by the Principal and is also confirmed by the Principal, therefore, A.O. should not have doubted the explanation of the assessee - Decided in favour of assessee.
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