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2012 (11) TMI 703 - ITAT AHMEDABADDis allowance of account of payment of commission - The assessee claimed a sum of Rs.84,47,845/- as deduction towards Commission payments, out of which a sum of Rs.79,46,846/- was claimed to have been paid to Shri Sandeep Mehta, proprietor of M/s Safal Inc., Mumbai. - The AO also recorded a statement u/s 131 of the Act from Shri Sandeep Mehta and in the said statement also he averred that he has received only Rs.9,71,000/- from the assessee company. - AO made the additions but CIT(A) deleted the additions - held that:- The action of the AO in not affording the opportunity of cross examination to the assessee is against the principles of natural justice. In view of the above discussions, we are of the view that the impugned issue requires reconsideration at the end of the assessing officer, in which the AO should invariably provide opportunity of cross examination of Shri Sandeep Mehta to the assessee. Section 43B - Disallowance relating to the “Finance charges” claimed by the assessee - payment of scheduled bank - Held that:- the assessee did not file any evidence to show that the above cited Co-operative banks would not fall in the category of Scheduled Bank as defined in sec. 11(5)(iii) of the Act, more particularly the copy of Second Schedule to the Reserve Bank India Act, 1934. - matter remanded back. Share application money - held that:- here is no dispute with regard to the fact that the impugned amount of Rs.36.60 lakhs pertains to Share application money and the assessee has furnished the names and addresses of the share holders along with other details that were available with it. - Decided in favor of assessee.
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