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2014 (6) TMI 153 - HC - Income TaxDisallowance of remuneration to dealers – Held that:- Whether the parties were required to reduce the rates of commission for each year in to writing is not an aspect which could have been gone into by the AO - The way parties entering into a voluntary commercial transaction spell out their relationship, is a matter of contract, which except by statutory supervision, the AO cannot go into, at least u/s 37 (1), given that the exclusive domain of deciding whether the expenditure is warranted, is that of the assessee - The decision is entirely a business related one - If the matter is viewed from this perspective, the fact that the commission was 90% in the first year and reduced to some extent in the latter years ipso facto is not a consideration for the AO to have concluded that, it necessarily had to be reduced to 60% for the fourth year, i.e., 2006-07 - no support in terms of the contract or expressed provision of law or rules has been cited in support of the AO’s determination in this regard - TDS payments were made in respect of the dealership commission parted or shared by the assessee, as is evident from the records – Decided in favour of Assessee.
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