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2017 (1) TMI 629 - AT - Income TaxNon-deduction of TDS while making payment on account of commission - as per assessee the said commission was paid to his staff and, thus, it was not attracted Section 40(a)(ia) - Held that:- As during the hearing in remand report, the assessee produced all books of accounts, documents, salary register before the AO in response to the remand report sent by the CIT(A). Accordingly the AO sent the notice u/s.131 of the Act, to the said 5 staff of the assessee by post to their residential address for their personal appearance with documents. Four of the staff out of five staffs appeared before the AO along with their voter ID and bank accounts and they all admitted that they received salary very nominal amount and they received commission on their sale as their designation is ‘Sales Representatives’. On considering and being satisfied of their identity with the documentary evidence such as books of accounts, vouchers, bank accounts, voter ID etc. and on considering the oral submissions and acceptance of sale for the staff of the assessee, the AO has rightly observed that commission was paid to the staff of the assessee. Ld. AR also submitted that the remand report prepared by the AO after giving further opportunity of being heard to the assessee and after verification of all returns and witnesses and there is no infirmity in the remand report, therefore, ld. CIT(A) must accept it. The remand report was prepared by the AO after thoroughly verification of books of accounts, documents as well as personal appearances of the staff of the assessee in respect of notice u/s.131 of the I.T.Act. But the ld. CIT(A) disbelieved in the remand report of the AO and passed the erroneous order - Decided in favour of assessee
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