TMI Blog2017 (4) TMI 1584X X X X Extracts X X X X X X X X Extracts X X X X ..... lia, the mandate of provisions of sec. 250(6) of the Act, bringing out clearly the nature of services rendered by each of the recipient of commission. We have noticed from the findings of the Ld.CIT(A) that the assessee failed to establish with the relevant documentary evidence that any services had been rendered by those persons to whom commission was paid. We find that part of the compliance regarding the services were actually rendered by commission recipients could not be established in spite of giving further opportunity in the set aside proceeding as per the order of Coordinate Bench of ITAT. In view of these facts and findings, we do not find any reason to interfere in the findings of the ld. CIT(A). Appeal of the assessee is dism ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation, ledger copy of current and next year, copy of TDS certificate etc. The assessing officer has also pointed out in the preceding assessment year commissions paid was ₹ 3,91,865/- whereas during the year under consideration the commission paid was ₹ 7,34,054/-. He stated that assessee failed to explain the rise in sale commission. He further stated that in support of commission expenditure no verifiable document was produced by the assessee to categorically establish that actual services were rendered by commission recipients. Therefore, the assessing officer disallowed the commission expenditure claim ₹ 7,34,054/- and added to the total income of the assessee. 4. Aggrieved against the order of the assessing off ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to establish that services were rendered by those persons in lieu of commission received by them. All the details and submissions filed by appellant are same as were given during earlier appellate proceedings as well as before Hon'ble ITAT. No new evidence has furnished to prove that the services were actually rendered by-those persons. From the submissions, it clearly reflects the appellant has general replies and focused only on establishing the genuineness of expenses. Nowhere in the submissions have been mentioned that what services were rendered by the persons who were given commission by appellant. As already observed by Hon'ble ITAT, it is the assessee who has to establish that payments have made for services rendered by re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be deducted have been expended by the assessee in fact and ii) the payments have been made for services rendered to the assessee. If there is nothing to show that the agents had rendered any services at all to the assessee, payments can not be deducted u/s 37 of the Act. [Madura Knitting Co. vs. CIT, 30 ITR 764 (Mad.), Vishnu Agencies P Ltd. vs, CIT.117 ITR 754 (Cal.), 117 ITR 823 (Cal.), Chemaux P Ltd. vs. CIT 109 ITR 705 (Bom). Mere existence of an agreement without anything more is for allowance of deduction of commission [Lachminarayan Madan Lal vs. CIT.86 ITR 439 (SC).] In the instant the AO disallowed the claim for deduction of commission since assessee did not furnish any evidence of services rendered by agents, to whom commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in mind, inter alia, the mandate of provisions of sec. 25O(6) of the Act, bringing out clearly the nature of services rendered by each of the recipient of commission. We have noticed from the findings of the Ld.CIT(A) that the assessee failed to establish with the relevant documentary evidence that any services had been rendered by those persons to whom commission was paid. We find that part of the compliance regarding the services were actually rendered by commission recipients could not be established in spite of giving further opportunity in the set aside proceeding as per the order of Coordinate Bench of ITAT. In view of these facts and findings, we do not find any reason to interfere in the findings of the ld. CIT(A). 7. In the r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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