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2018 (8) TMI 1548 - AT - Income TaxDisallowance towards commission expenditure - TDS liability - Held that:- The very fact that the DCIT(TDS) has issued Nil deduction certificate u/s 197(1) obligates the assessee to make the payment without deduction of tax at source. We hold that the identity of the commission agents are proved beyond doubt in-as-much as the summons issued by the AO on them were duly served on them; they are income tax assessee; certificate issued u/s 197(1) for each of the commission agents by the Income-tax Department; all the commission agents have filed their income-tax returns showing the commission received as income in their respective returns and master data of Registrar of Companies website showing these companies in ‘active’ category. The payments in commission are made on a monthly/periodical basis based on the clearing of the bills of the assessee pursuant to periodical invoices raised by those commission agents clearly defining the services rendered by them and linking the sales made through them for and on behalf of the assessee. All these payments are made by a/c payee cheques. There is absolutely no iota of evidence to suspect the genuineness of these transactions and there is no case made out by the revenue before us to sustain the order of the ld. AO. - Decided against revenue
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