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2017 (12) TMI 1053 - AT - Income TaxDisallowance of commission paid - Held that:- The allegation that the amount received through cheque was returned back in cash to the assessee is completely baseless and based on surmises. No such evidence brought on record. Further, the assessee has started new business with National Highway Authority of India during the year. The turnover has increased substantially. The books were duly audited and no discrepancy was pointed out by the Assessing Officer. The other allegation that this amount might have been towards the illegal payment for getting the advertisement is also without any basis. No evidence is on record to support such observation. The ld. CIT(A) observation to sustain the addition that the payment was illegal gratification or bribe paid to the public servant is completely baseless and it is only surmises and conjectures. There is no evidence on record, which substantiates this observation of the ld. CIT(A). This expenditure incurred by the assessee was wholly and exclusively for the purpose of business and such expenditures are allowable expenditures U/s 37 of the Act - Decided in favour of assessee Disallowing the TDS credit - Held that:- It is noted from the written submissions of the A.R. of the assessee wherein he has prayed that TDS was deducted by the client at the time of payment made to the assessee and TDS certificate was issued during the year of payment. The ld A.R. further submitted that the assessee has correctly claimed TDS of ₹ 6799/-. In this view of the matter, it will be in the interest of justice and equity to restore the ground of appeal to the file of the Assessing Officer to decide it de novo after taking into consideration various facts of the issue including issue of the TDS certificate. Accordingly, ground No. 2 of the appeal is allowed for statistical purposes.
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