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2014 (5) TMI 472 - AT - Income TaxNature of Commission income - business income or income from other sources - shame transaction or not – AO observed that none of the expenses are allowable in view of his assessing the income of the appellant as ‘Income from Other Sources’ as against the ‘Business Income’ disclosed by the appellant - Held that:- The assessee has declared its business to be carrying out the marketing activities for M/s Sarthak Metals Marketing Pvt. Ltd. - Sh. Amit Kumar Aggarwal has stated that the commission was received from the parties but, he could not remember the names of the parties from whom orders were procured for these parties - CIT(A) rightly held that it cannot lead to the conclusion that these were sham transactions - assessee has provided the services to the parties, CIT(A)’s order is reasonable in this regard – there is no infirmity in the order of the CIT(A) – Decided against Revenue. Commission expenses – Held that:- CIT(A) has rightly observed that these persons have given the general replies to the specific queries and were not able substantiate as to what were the specific activities carried out by them for which they receive commission - They were also not able to produce the books of accounts - No proper books or agreements was provided in ascertaining the commission payment nor it could be proved that they have knowledge / experience in providing such services - the onus is on the assessee to link up the commission payment made to various parties with the particular transactions - AO was justified in disallowing the commission payments – Decided against Assessee. Other expenses – Held that:- CIT(A) has adjudicated the issue granting part relief to the assessee - assessee has claimed that he has submitted voluminous details and submissions before the CIT(A) which have not been properly adjudicated – it is true that the CIT(A) has not properly considered the submissions of the assessee – thus, the matter related to the claim of expenditure by the assessee except for the claim of commission expenses is remitted back to the AO – Decided in favour of Assessee.
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