Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2012 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (3) TMI 59 - AT - Income TaxDis allowance of Commission - Sales bill didn't mention assessee as Commission agent - Appellant failed to produce any material in support of agent obtaining orders from these parties - No evidence on support of material transferred and liaisoning - Held That:- the appellant has failed to explain why M/s Rohit Traders has failed to raise debit note at the end of the every sale. The appellant has also failed to explain why the claim of commission @2% is on sales much lower than the total sales to these two companies. The sales Hindalco Industries Ltd. is of Rs.103.04 crores but the commission is only of Rs.88.36 lacs. The sales to Essar Steel Ltd. are Rs.97.09 lacs but commission is claimed only on Rs.86.74 lacs. Decided against assessee. Disallowance - The assessee stated that it had made payment on three different dates and it submitted copy of payment vouchers copy of bank statement, DD through which payment was made and TDS certificate evidencing the payment. The assessee further argued that since the TDS payment was made late, proportionate disallowance has already been made u/s 40(a)(ia) and it amounts to double addition. The AO, however, disallowed the commission payment because the assessee failed to give evidence of rendering services. No evidence was brought on record for services being rendered. The AO further stated that the TDS was not deducted at the rate prescribed under the Income-tax Act. - disallowance confirmed. Incentive paid to workers - genuiness of expenses - while going through the details filed by the assessee in the Paper Book in respect of these expenses and taking into consideration the smallness of the amount involved that too for welfare of labourers and taking a lenient view of the matter, the addition of Rs.53,200/- made by the AO and sustained by ld. CIT(A) is deleted.
|