TMI Blog2024 (4) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... action of AO disallowing same is confirmed. Therefore, issue regarding commission payment is restored back to the file of the AO for verification and the assessee to submit the relevant evidences as stated and the AO to pass order in accordance to law after hearing the assessee. Appeal of the assessee is allowed for statistical purposes. - Shri Aby T. Varkey, JM And Shri S Rifaur Rahman, AM For the Assessee : Shri Shashank Mehta For the Revenue : Shri H. M. Bhatt (Sr. DR) ORDER PER ABY T. VARKEY, JM: This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi, dated 30.05.2023 for AY. 2018-19. 2. The main grievance of the assessee is against the action of the Ld. CIT(A) confir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been rendered by those parties to whom commission was booked as payment/expenditure. According to the AO, the assessee had only submitted computer-generated invoices in support of commission expenditure; and assessee submitted that he earned brokerage from the respective bank or finance institutions for arranging finance for his customers; and he in-turn share the brokerage income with persons who has referred such customers [who availed loans through him]. According to the assessee, the practice of sharing/payment of brokerage were part parcel of his business of arranging finance to the needy customers. However, the AO was not satisfied with the explanation of assessee regarding the genuiness of the commission expenditure, and pointed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from tele-caller services and from outside references etc. It is noted that the assessee for services rendered by him (of arranging loan to customers from financials institution/banks) has received commission (from financial institution/bank) to the tune of Rs. 98,31,117/- and had shown to have incurred commission expenditure of Rs. 44,36,581/- [for thirteen (13) parties] named by AO at page no. 2 3 of his assessment order. And also assessee has claimed to have incurred franking charges (on behalf of customers) to the tune of Rs. 4,25,176/- which expenses the AO noted to be approximately 50% of the income. The AO also noted that the assessee has claimed to have disbursed salary to his employees to the tune of Rs. 16,08,020/- and after claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cheque/banking channel to all of them; and assessee has filed the relevant details viz name, address PAN of those thirteen parties and the assessee demonstrated to AO/Ld. CIT(A) that these payments were made for reference of customer/borrowers to whom assessee had arranged loans and for such services rendered by assessee, the financial institutions/banks have given assessee commission to the tune of Rs. 98,31,117/-. And since services were rendered by thirteen (13) brokers, by virtue of it assessee received commission, the commission/brokerage given by assessee to these thirteen brokers ought to have been allowed. In this regard, we note that the assessee has filed the details of commission expenditure along with invoices which are found pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le from page no. 61 of PB. From a perusal of it is noted that the assessee had furnished the details of the parties to whom the franking charge has been incurred by assessee (on behalf of the customers). However, no other evidences have been filed by assessee to prove that franking charges have been incurred wholly and exclusively for the purpose of business, the Ld CIT(A) confirmed the action of AO. On the same reason, the action of Ld. CIT(A) confirming the action of AO disallowing same is confirmed. Therefore, issue regarding commission payment of Rs. 44,36,581/- is restored back to the file of the AO for verification and the assessee to submit the relevant evidences as stated (supra), and the AO to pass order in accordance to law after ..... X X X X Extracts X X X X X X X X Extracts X X X X
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