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2016 (3) TMI 412 - AT - Income TaxDisallowance of expenditure - Held that:- The nature of activity which has given rise to commission income to the assessee, because, the assessee was working as plant operator in the Gujarat State Electricity Corporation Ltd. and a salaried employee. The assessee submitted that the assessee has received commission income from Jindal Aluminum and Banco Aluminum. These concerns must have made certain purchases of aluminum products and the assessee with the assistance of these three persons helped these concerns. In respect of this activity, not a single document was being maintained by the assessee. He could not produce any details from Jindal Aluminum or Banco Aluminum. The CIT(A) has provided opportunity to the assessee to demonstrate what is the nature of services these three persons have given to the assessee. Not to talk of services provided by these persons, even, the assessee could not produce the nature of activity for giving rise to the commission income. He has received some income, but failed to demonstrate the activity of earning of this commission income. The expenditure for earning any income can be claimed by the assessee, if he is able to demonstrate that the expenditure was exclusively and wholly incurred for the purpose of business activity. The factum of the payment of money may not be in doubt, but the factum of rendering of services at the end of these three persons is totally missing. Therefore, the ld.CIT(A) has rightly confirmed the disallowance made by the AO. No interference is called for in the order of the ld.CIT(A). - Decided against assessee.
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