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2018 (4) TMI 737 - AT - Income TaxClaim of expenditure u/s 37 - commission expenditure - Held that:- We are of the opinion that the assessee paid commission to Shri Laxminiwas V. Agrawal, Director of the company and the same has the support of the Board’s Resolution. In our view this part of the claim is allowable subject to the documentation relating to the filing of computation of income of Shri Laxminiwas V. Agrawal and the applicable higher tax rates. See CIT Vs. Indo-Saudi Services (Travel) Pvt. Ltd.(2008 (8) TMI 208 - BOMBAY HIGH COURT ). Regarding the commission payments made to the commission agents, i.e. Shri Ramesh Chandak (HUF) and Shri Ravindra Agrawal (HUF), we find these payments are made to these parties for the first time and the deduction is claimed u/s.37 of the Act. Therefore, there is need for discharge of onus by the assessee with reference to the nature of services rendered by them to the company. Therefore, for want of discharge of onus by the assessee, we find this portion of the issue needs to be remanded to the file of the AO. Assessee shall be granted reasonable opportunity of being heard to the assessee in accordance with the set principles of natural justice. - Appeal of the assessee is allowed for statistical purposes.
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