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2017 (7) TMI 69 - AT - Income TaxDisallowance of commission as business expenditure - proof of actual work - Held that:- No work was done by the agents for the assessee warranting payment of commission. This fact has not been controverted by the assessee before us. No evidence whatsoever has been produced before us contradicting this finding of the CIT(A). The only evidences on which the Ld. AR places reliance upon is the Income Tax Returns of the agents which do not establish that they had done any work for the assessee. Further the statement of the three agents admitting in so many words that the commission paid was merely an accommodation entry, explaining the manner of execution also coupled with the above facts as found by the AO that no evidence of services rendered by the agents was filed by the assessee, the agents had no knowledge of the product sold, had no links with the purchasers, had claimed receipt of commission only for introducing the buyers and the fact that most of the buyers were known to the assessee and did not require any introduction, seals the matter against the assessee. Thus we uphold the order of the CIT(A) confirming the disallowance of commission expenses - Decided against assessee.
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