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2016 (2) TMI 834 - HC - Income TaxDisallowance of secret commission - CIT(Appeals) has not disallowed the entire claim but limited it to 1% of the turnover of the assessee - ITAT confirmed disallowance - Held that:-CIT(Appeals) making the disallowance limited it to 1% of the turnover of the assessee noticing that the claim of secret commission, had shot up to 7.03% of the turnover for the year under consideration whereas the gross profit rate had gone down from 13.26% to 10.26%. More importantly, it was noticed that as against the net profit of ₹ 6.14 lacs, the assessee claimed to have paid secret commission of ₹ 19.85 lacs. The revenue authorities also noted that the assessee had not kept any accounts or receipts of where and to whom such commission was paid. When these are the parameters which the CIT(Appeals) considered, for restricting the claim, we do not see any reason to interfere in exercise of our jurisdiction to consider substantial question of law - Decided against the assessee.
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