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2016 (7) TMI 672 - ITAT KOLKATACommission expenditure - deduction u/s.37(1) - whether services were provided or not - Held that:- In the absence of any evidence to show that services were in fact rendered by the persons to whom the Assessee paid commission, all these considerations fade into insignificance. The CIT(A) has proceeded under the assumption that it is the revenue that has to prove that services were in fact not rendered by the person to whom commission was paid. This approach is legally not correct. When the primarily evidence of nature of services rendered for which Assessee paid commission is not on record, it is not possible to say whether the expenditure was wholly and exclusively incurred for the purpose of business and also as to whether explanation to Sec.37(1) of the Act would be attracted. For the reasons given above, we reverse the order of the CIT(A) and restore the order of the AO. In the result, appeal by the Revenue is allowed.
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