TMI Blog2012 (11) TMI 1204X X X X Extracts X X X X X X X X Extracts X X X X ..... been raised though the dispute revolves around two issues. The first dispute relates to an addition of ₹ 5,64,352/- made by the Assessing Officer out of commission expenditure. The second issue relates to disallowance by invoking sec. 40(a)(ia) of the Act on the ground that the assessee did not deduct the requisite tax at source. 3. In so far as the first issue is concerned, facts are that the assessee is a firm which is engaged in the business of dealing in motor-cars, repairs and servicing thereof. It was noticed that the assessee is paying commission to brokers on cars sold. The assessee had paid a commission of ₹ 12,71,740/- to one of its sister concern M/s. Sanjay Financial and Marketing Solutions Pvt. Ltd. (for short SE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal was correct in coming to the conclusion that the CIT(A) was wrong in disallowing half per cent commission paid to the sister concern of the assessee during the assessment years 1991-92 and 1992-93. The learned advocate appearing for the appellant was also not in a position to point out how the assessee evaded payment of tax by the alleged payment of higher commission to its sister concern since the sister concern was also paying tax at higher rate and copies of the assessment orders of the sister concern were taken on record by the Tribunal. The similar ratio has been laid down by Hon ble Punjab and Haryana High Court in the case of CIT Vs. Siya Ram Garg (HUF) 237 CTR 321 (P H). In view of the above facts and discussion and r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the sister concern was paid a total commission of ₹ 12,71,740/- out of total commission expenditure of ₹ 14,94,747/- and that as against 87 cars sold through other parties, the sister concern was responsible for effecting sales of as many as 276 cars. It was thus pointed out that substantial sales have been made through the sister concern. Secondly, at the time of hearing, the learned counsel has also pointed out that the sister concern was engaged in financing business also which was responsible for increased sale of cars and that such an activity was not being carried out by the other parties to whom the commission has been paid. In our considered opinion, based on the above factors, it can be inferred that payment of comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DTR 40 (Bom)(Trib) (2) Golden Stables Life Styles Centre Pvt.Ltd. Vs. CIT ITA No. 5145/Mum/2009 reported in BCAJ November 2010 page 27. The appellant has therefore filed revised computation of income without disallowing the expenditure in respect of which TDS has been claimed to have been paid before the due date of return. The above contention of the appellant is found to be correct and supported by the decisions relied on by the appellant and hence accepted the AO is directed to reduce the disallowance made by the appellant in the return of income filed for delay in payment of TDS in the cases where the TDS has been paid before the due date of filing the return of income prescribed u/s 139(1) of the Act. Ground No. 7 stands allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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