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2018 (4) TMI 1578 - HC - Income TaxDisallowance of commission expenses - The stand of the Department that the business related to government supplies, no commission is required, MPLUN is merely facilitators and the actual buyers are Public Works Department and Indore Development Authority, and therefore, representatives of the assessee collects the orders from these departments and also collect due for the assessee – firm. Held that:- we are of the considered opinion that the ld. CIT (A) was justified in deleting the addition on account of commission payments debited to the profit and loss account. - the asessee is dealing in supplies of sign board etc. which required fixing site visit measurement etc. for which commission agents have rendered the service as these agents are having experience in work and expertise of government supply. Therefore, requirement of Representatives for doing such jobs cannot be denied - Decided against the revenue.
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