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2017 (3) TMI 395 - HC - Income TaxAllowable expenditure under section 37(1) - commission payment - ITAT disallowed claim - Held that:- We may observe that in view what has been held in the case of DCIT Vs. Super Tannery (India) Ltd. (2004 (8) TMI 43 - ALLAHABAD High Court) it cannot be said that such an expenditure if found to have been actually incurred is not allowable. The finding of the Tribunal to the contrary is clearly unsustainable. Tribunal also appears to have chosen to read certain parts of the statement given by the Sheikh Safat Ahmad in isolation and not in entirety of the facts and circumstances of the case. In so far as the finding of such payment having been made for the business purposes or it is genuine we find that the Tribunal has not considered the entire material in light of the particular facts of the case but has got swayed by certain inconsistencies and deficiencies noted by making a microscopic examination of the statement of Sheikh Shafat Ahmad as if it (Tribunal) were examining the case of that person whereas in the instant appeal it was only required to see if the expenditure claimed to have been borne by the assessee was genuine. If the answer on this issue were in favour of the assessee, then it would be of little consequence (in these proceedings) how Sheikh Shafat Ahmad has dealt with the money received by him from the assessee. We set aside and the matter is remitted to the Tribunal to decide the appeal afresh after affording opportunity of hearing to the parties.
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