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2017 (4) TMI 957 - AT - Income TaxDisallowance of commission - Held that:- Disallowance of commission cannot be sustained. As already seen, the payment of commission and the transactions for which Savita Industrial Agencies acted as an intermediary have been given from pages 6 to 20 of the assessee’s paper book. This contains the entire details of the transactions for which the recipient received commission and the contract for which he has acted as an intermediary, the value of the contract, percentage of the commission, details of TDS etc. In the light of this availability of documentary evidence which contains all details, it is futile to contend that the assessee has failed to prove the nature of services rendered. As rightly contended by the ld. Counsel for the assessee, if the AO was serious in verifying the nature of services rendered by the recipients nothing prevented him from issuing summons u/s 131 of the Act to enforce the attendance of Savita Industrial Agencies. The position of the other parties Shri Shyam Marketing service and Yashwant Mourya are also identical. Also find that expenditure on account of commission to the aforesaid three parties has been claimed in A.Y.2008-09 and allowed by the AO. This fact also goes to show that the claim of the assessee is genuine and calls for no disallowance. - Decided in favour of assessee Disallowance of telephone expenses, conveyance expenses and travelling expenses at 20% - Held that:- As we have already seen the Assessee was handicapped by the fact that several of documents to support his claim were destroyed in a fire at his business premises. In my view such disallowance on an adhoc basis without any satisfactory material cannot be sustained. Therefore direct that the aforesaid disallowances should also be deleted. Ground raised by the assessee is allowed.
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