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2015 (10) TMI 2114 - AT - Income TaxDisallowance of Commission - stand of the assessee is that in the earlier assessment years i.e. assessment years 2006-07, 2007-08 and 2008-09 the payment of commission has been allowed in scrutiny assessment proceedings - Held that:- The Commissioner of Income Tax (Appeals) in his order has given a finding that the assessee has inflated its brokerage expenses by paying commission to his sons. There is no evidence on record of rendering extra services by sons/nephew in sale of cotton bales to justify receipts of commission. The sale/purchase of cotton bales is effected through Adatiya to whom a reasonable commission/brokerage is given. In the interest of justice, we deem it appropriate to remit this issue back to the Assessing Officer for fresh adjudication. The assessee shall furnish documentary evidence in support of the contentions. - Decided in favor of assessee for statistical purposes. Disallowance u/s. 68 - Held that:- The assessee had shown credit balances in respect of certain persons/farmers from whom the assessee has allegedly purchased raw cotton. During the course of assessment proceedings the assessee was directed to produce the said creditors. However, none of the persons (alleged creditors) appeared before the Assessing Officer. The assessee filed confirmation letters without any corroborative evidence. Before the Tribunal, the assessee has placed on record photocopies of the transaction receipts to show that the assessee had dealt with the aforestated persons. In view of the additional documents placed on record, we deem it appropriate to send the file back to the Assessing Officer for verification of same.- Decided in favor of assessee for statistical purposes. Addition u/s. 40A(3) - making payments in excess of ₹ 20,000/- by bearer cheques - Held that:- The Commissioner of Income Tax (Appeals) in the impugned order has given a specific finding that the examination of the cheques revealed that the assessee’s sons Nirav Deepak Poldiya has signed on the back side of the cheque suggesting that he received the cash payments. The ld. AR has not been able to controvert this finding of the Commissioner of Income Tax (Appeals). The ld. AR of the assessee has not been able to show as to how the payment made to the persons named in the assessment order as well as the order of Commissioner of Income Tax (Appeals) to whom the alleged payments are made are covered under the exceptions given in Rule 6DD of the Income Tax Rules, 1961. We do not find any infirmity in the findings of the Commissioner of Income Tax (Appeals) in confirming the disallowance u/s. 40A(3) of the Act. - Decided against assessee.
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