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2018 (5) TMI 1943 - AT - Income TaxDisallowance of commission payment - HELD THAT:- Assessee has submitted enough evidence in support of utilizing the services of agents in the business and also revenue authorities have not brought any cogent material to show that the payments were come back to assessee and these payments cannot be categorized as gratuitous payments. Therefore, we delete the addition made by the AO. Hence, grounds raised by the assessee are allowed. Reopening of assessment u/s 147 - HELD THAT:- AO came to conclusion that the payments of commission claimed by assessee are not genuine in AY 2011-12 and he came to conclusion on the same breath that the payments were made in the earlier years are also not genuine even though these assessments were completed u/s 143(3). The findings of AO are mere presumptions and not reached the logical conclusion and not put to test before any adjudicating authorities. If it is allowed to these actions, there cannot be any completed assessments. The legislature/courts have taken enough precautions to avoid such type of reopening of assessment by mere change of opinion. By relying on the above judicial precedents, in our view, AO has reopened the assessment merely based on presumption and change of opinion. Therefore, the reopening of assessment in AY 2009-10 & 2010-11 are bad in law. Accordingly, ground raised by the assessee is allowed in both the years under consideration.
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