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2012 (6) TMI 267 - AT - Income TaxCommission to Managing Director holding 39.9% of shareholding - dis-allowance on ground that assessee has not distributed the dividend from the very inception and the amount of commission could be paid as a profit or dividend income - Held that:- Distribution of dividends is one component. It does not give the meaning that if an assessee failed to distribute the dividend, then payment of any commission would take the colour of dividend. The commission paid to managing Director is linked with the sales turnover of the assessee and to the performance of the directors. It has nothing to do with the shareholding pattern - dis-allowance held to be unjustified - Decided in favor of assessee. Admission of additional evidences - Rule 46A - first appellate authority deleted the addition made by AO after admitting and going through additional evidences - Held that:- Sub-rule (3) of Rule 46A suggests that first appellate authority shall not take into consideration any evidence produced under sub-rule (1) of Rule 46, unless the Assessing Officer has been given an opportunity to rebut the evidence taken on record. Since no opportunity was given to the AO, therefore, order is set aside on this issue and issue restored to the file of the Assessing Officer for readjudication.
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