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2016 (2) TMI 431 - AT - Income TaxCommission payment - whether the commission to be accepted to have been incurred for business purposes? - Held that:- Mere making a claim is not sufficient-it has to backed by documents and evidences. The assessee has failed in discharging the onus cast upon it by the provisions of the Act. Hon'ble jurisdictional High Court, in the matter of Ramanand Sagar (2002 (2) TMI 52 - BOMBAY High Court ), has held that Section 37 of the Act deals with the question relating to the allowability of the expenditure incurred for the purposes of business, that the onus of proof is upon the assessee to prove each of the following ingredients before the expenditure can be allowed as deduction: (a) the item of expenditure must not be of the nature described under sections 30 to 36 of the Act; (b) the item of expenditure must not be in the nature of capital or personal expenses of the assessee; (c) the expenditure must be laid out wholly and exclusively for the purpose of business or profession, that if the assessee fails to satisfy any of these tests, the expenditure claimed is not allowable. In our opinion, in the case under consideration the assessee has failed to discharge the initial onus to prove that the expenditure incurred under the heads rendering of services by ALT. Mere payment of a sum by accounting paying cheque is not sufficient. If we consider all the surrounding circumstances it becomes clear that the commission payment to ALT cannot be accepted to have been incurred for business purposes. Therefore, we are of the opinion that the order of the FAA has to be endorsed, as it is not suffering from any legal or factual infirmity. - Decided against the assessee.
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