TMI Blog2023 (5) TMI 831X X X X Extracts X X X X X X X X Extracts X X X X ..... with the details of the bank statements, TDS details etc. The assessee had filed confirmations from all the recipients of the commission payment with new addresses and the same are placed on record. The assessee has also made TDS deduction with respect to the commission payment made by him. The bank statements are also provided. Since the first appellate authority s order is an ex parte order, in the interest of justice and equity, we are of the view that one more opportunity ought to be provided to the assessee to prove that commission payments as genuine payment and necessary expenditure for the purpose of his business. Decided in favour of assessee for statistical purposes. - ITA No.156/Bang/2023 - - - Dated:- 26-4-2023 - Shri G ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m the commissions were paid by the assessee. Out of the 20 parties, only 7 parties responded to the notices issued u/s 133(6) of the I.T.Act. The notices issued u/s 133(6) of the I.T.Act to 4 parties were delivered but there was no response and for the balance 9 parties, the notices issued were returned back as un-served. The assessee was directed vide notice dated 17.12.2018 to produce before the A.O., the parties to whom the commissions were paid in order to prove the genuineness of the commission expenditure and the existence of the said parties (the payees were directed to be produced before the A.O. on 20.12.2018). In response, the assessee filed letter dated 20.12.2018 stating that most of the parties to whom notices were issued u/s 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents for payment of certain amounts as commission, assuming there was such payment, that does not bind the Assessing Officer to hold that the payment was made exclusively and wholly for the purposes of assessee s business. It may also be noted that, not only there are no agreements; even there are no evidences of any correspondences or personal meetings between the assessee and the commission agents, so as to suggest that there was any relationship on the basis of which the commission agents procured customers for the assessee and for which they are entitled for any commission. Hence the argument put forth by the assessee that mere payment of commission through account payee cheque (copy of bank account statement) after TDS, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant's case. 2. The appellant denies himself to be assessed at Rs.1,17,11,290/- as against the returned income of Rs.23,58,420/- for the assessment year 2016-17 under the facts and circumstances of the case. 3. The learned CIT(A) was not justified m confirming the disallowance of Rs.93,53,500/- being commission paid, on the facts and circumstances of the case. 4. The learned CIT(A) was not justified in stating that the appellant has not made any submission, which is an erroneous observation of fact and contrary to record, on the facts and circumstances of the case. 5. The learned CIT(A) was not justified in appreciating that the assessing officer has disallowed the commission expenditure, without appreciating th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10. The appellant craves to add, alter, amend, substitute, change and delete any of the grounds of appeal. 11. For the above and other grounds that may be urged at the time of hearing of the appeal, the Appellant prays that the appeal may be allowed and justice rendered. 6. The assessee has filed a paper book comprising of 130 pages enclosing therein the confirmation of the parties to whom the assessee has paid the commission, the details of the TDS amount, the bank statements, the financial statement of the assessee, etc. The learned AR submitted that the parties, to whom the notices u/s 133(6) of the I.T.Act has been issued, have changed the address and the correct address has been furnished by the assessee to the A.O. It wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rst appellate authority s order is dated 27.02.2023 and the same has not taken note of the documents / written submission filed. 9. The A.O. had issued show cause notice and proposed to make disallowance of the commission paid to 13 parties by stating that there was no response from the said parties. The assessee had made enquiries and ascertained that majority of the parties had moved their residences and present residing in places other than the addresses as provided to the A.O. during the assessment year 2016-2017, along with the details of the bank statements, TDS details etc. The assessee had filed confirmations from all the recipients of the commission payment with new addresses and the same are placed on record. The assessee has a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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