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2019 (11) TMI 986 - ITAT HYDERABADBogus commission expenditure - AO after recording statement of all agents came to conclusion that all the agents are not genuine as they do not have any basic information of doing any business with the assessee - HELD THAT:- Extensive discussion was made on the issue in the AY.2011-12 by the AO, CIT(A) as well as the ITAT, we deem it necessary to follow the order of ITAT in assessee’s own case [2018 (5) TMI 1943 - ITAT HYDERABAD] for the earlier assessment years as well as the subsequent assessment year as held that assessee had claimed commission payment as expenditure and paid through banking channel and deducted TDS as per the provisions of I.T. Act. The issue before us is, AO after recording statement of all agents came to conclusion that all the agents are not genuine as they do not have any basic information of doing any business with the assessee. The same view was ratified by ld. CIT(A). We notice from the statement recorded from agents that all have confirmed the receipt of commission and declared the same as income in their respective returns. From the statement, we notice that few agents are either house-wives, students or retired personnel. They do not have any information of the transaction carried on with the assessee but all of them had a direct link with the assessee as their husbands, parents or one of the family members, who are in direct contact with the assessee. It shows that the subordinates or family members have assisted in carrying out the agency business for the recipient of the commission. Assessee has submitted enough evidence in support of utilizing the services of agents in the business and also revenue authorities have not brought any cogent material to show that the payments were come back to assessee and these payments cannot be categorized as gratuitous payments. Therefore, we delete the addition made by the AO. - Decided in favour of assessee.
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