Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2012 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2012 (12) TMI 459 - HC - Income TaxCommission paid to the sub-distributors - disallowance as no evidence furnished regarding work done/services rendered by three dealers - CIT(A) allowed the claim - Held that:- The assessee appointed three sub-distributors as stockists for selling cement. Sub-distributors were providing services of stockist, taking orders from local customers for sale of cement and supplying/selling the cements to the local customers as such they were entitled to get commission on the sales effected by them. It has been proved by the assessee that actual commission was paid to the sub-distributors. Earlier for the financial years 1988-89, 1989-90 and 1990-91, deduction of the payment of commission has been allowed. Income Tax Appellate Tribunal has not applied it's mind to the evidence on record and has illegally set aside the order the Commissioner of Income Tax (Appeals) without considering the reasons recorded by it. Appellate Tribunal is illegal and is liable to be set aside - case remanded back for reconsideration.
|