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2016 (3) TMI 1149 - AT - Income TaxDisallowance made on account of commission expenses not incurred wholly & inclusively for the purpose of business - Assessee has failed to produce any evidential proof regarding services rendered by such parties - Held that:- Assessee has submitted complete details of party-wise commission paid, as well as TDS deducted thereon, along with confirmation from the parties, full particulars with PAN and copies of liaison agreement with various parties. It is a general accepted fact that in pharma business commission expenses are incurred for boosting up sales and it is a usual practice. We further find that assessee gross turnover is also increased to 15.17 crores from ₹ 10.66 crores in the immediate preceding financial year and profit has also doubled reaching ₹ 20.74 lacks in the year under appeal from ₹ 11.06 lacs. We therefore are of the view that looking to the nature of business of assessee various details and documentary evidences produced before the lower authorities, increase in sales along with increase in profits and allowability of commission expenditure in previous years, we are of the view that ld. CIT(A) has rightly deleted the impugned addition disallowing commission and we find that the same has been incurred wholly and exclusively for the purpose of business and assessee has produced sufficient proof regarding services rendered by these parties. - Decided in favour of assessee Disallowance on account of prior period expenses - Held that:- Looking to the course of business of assessee wherein assessee is having various branches and details of expenses are to be sent to the head office then there remains the possibility that some invoices which pertain to prior period have been received by the head office of the assessee during the year under appeal. As the genuineness of the expenditure has not been doubted we find no reason to interfere with the order of ld. CIT(A) who has rightly deleted the addition made on account of disallowance of prior period expenses by Assessing Officer.- Decided in favour of assessee Disallowanceon account of late payment of employees contribution - amount deposited before the due date of filing return of income - Held that:- The contribution to PF/ESIC both by employees or employers' contribution towards employees' PF/ESIC are allowable u/s. 43B provided the same are deposited before the due date of filing return of income u/s. 139(1) of the I.T.Act, 1961. Considering all the facts and circumstances and the fact that the payment has been made before due date of filing of return u/s. 139(1) of the Income Tax Act, the disallowance made by the A. O. is directed to be deleted.- Decided in favour of assessee
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