TMI Blog2022 (3) TMI 428X X X X Extracts X X X X X X X X Extracts X X X X ..... as upheld by the Tribunal. In the impugned assessment year the Assessing Officer has made enquiries with regard to payment of commission by the assessee as is evident from the documents furnished by the assessee in the Paper Book. It is not a case of lack of enquiry. We are of considered view that the twin mandatory conditions as set out in section 263 of the Act i.e. assessment order should be erroneous and prejudicial to the interest of Revenue are not concurrently satisfied in the instant case. Hence, the PCIT has erred in assuming revisional jurisdiction u/s. 263 of the Act. The impugned order is quashed and the appeal by assessee is allowed. - ITA No. 846/MUM/2021 - - - Dated:- 16-2-2022 - SHRI G.S.PANNU,PRESIDENT And SHRI VIKAS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onse to the aforesaid notice pointed that in Assessment Year 2012-13 the Assessing Officer had made complete disallowance of commission paid to the same associate concern and other parties. In first appellate proceedings, the CIT(A) decided the issue in favour of assessee company and allowed payment of commission in full. Thereafter, the Revenue agitated the issue in appeal before the Tribunal in ITA No. 2232/Mum/2017. The Tribunal vide order dated 11/05/2018 dismissed appeal of the Revenue. The Revenue filed miscellaneous application in M.A. No. 751/Mum/2018 before the Tribunal. The said M.A of the Revenue was also dismissed vide order dated 13/11/2019. Thereafter, in Assessment Year 2015-16 the Assessing Officer allowed assessee's cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. in sales. The ld. Departmental Representative further pointed that the Department has already field appeal before the Hon'ble High Court against the order of Tribunal for Assessment Year 2012-13. The ld. Departmental Representative prayed for upholding the impugned order and dismissing appeal filed by the assessee. 4. Both sides heard, orders of authorities below examined. During the period relevant to assessment year under appeal the assessee has paid commission to the tune of ₹ 1,17,91,507/- to M/s. Toshbro Controls Pvt. Ltd. an associate concern of the assessee. The commission has been paid by the assessee to M/s. Toshbro Controls Pvt. Ltd. in accordance with the agreement dated 16/01/2012 (at page 87 of the Paper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dinate Bench dismissed the ground raised by the Revenue with respect to payment of sales commission by observing as under: 5. We have heard the rival submissions, perused the orders of the authorities below. On a perusal of the Assessment Order, we find that the Assessing Officer disallowed sales commission paid to M/s. Toshbro Controls Pvt. Ltd. mainly on two grounds firstly the parties through whom M/s. Toshbro Controls Pvt. Ltd. made sales have stated that they have received material directly from the assessee company and M/s. Toshbro Controls Pvt. Ltd. is a loss making company and therefore he was of the view that in order to see that there is no tax incidence, the profits were shifted to the loss making company by the assessee and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y in the order passed by the Ld. CIT(A) in allowing the claim of the assessee. Hence the order of the Ld. CIT(A) is sustained on this issue. 5. In Assessment Year 2015-16 the Assessing Officer accepted assessee's claim of payment of commission. The PCIT invoked revisional jurisdiction u/s. 263 of the Act to dislodge assessee's claim of payment of commission to M/s. Toshbro Controls Pvt. Ltd. on the ground that the Assessing Officer has failed to examine genuineness and reasonableness of large commission paid by the assessee to M/s. Toshbro Controls Pvt. Ltd. The assessee challenged the order passed by PCIT u/s. 263 of the Act before the Tribunal in ITA No. 1763/Mum/2020(supra). The Co-ordinate Bench after examining the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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