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2012 (8) TMI 679 - AT - Income TaxDisallowance of commission expenses - Held that:- It is settled law that if the assessee claimed deduction of any expenditure the burden of proof is on the assessee to establish that such expenditure was incurred wholly and exclusively for the purpose of assessee's business. In the present case it is an admitted fact that there is no written agreement between the assessee and the recipients of the commission agents. Even if there is no written agreement, the assessee could claim deduction for the expenses provided if it is established with documentary and cogent evidence that such expenditure was incurred for the purpose of its business. The assessee could not even produce any correspondence between the parties which could have served as a contemporaneous circumstantial evidence. The assessee is not able to correlate the commission payments with reference to the nature of service rendered by the recipient of the commission - the person/party to whom the payment by cheque is alleged to have been made has his own story to tell and which story is believed - against assessee.
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