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2018 (11) TMI 124 - AT - Income TaxDisallowance on account of commission paid - no genuine expenditure - Held that:- Though the A.O. had made up his mind not to allow the expenses incurred /claimed by the assessee on account of commission charged by M/s Sumiti Alloys (P) Ltd., yet he had picked up the gross figure of ₹ 90,72,893/- while overlooking the fact that service tax amounting to ₹ 8,47,242/- was included in the total figure of ₹ 90,72,893/-. It may be worth pointing out here that the assessee had claimed expenses to the tune of ₹ 82,25,651/- through its P & L Account (and not ₹ 90,72,893/-) CIT(A) had touched the issue relating to commission on export sales, and recorded “However keeping in view the fact that the said Sumiti Alloys (P) Ltd. is based at Ghaziabad and there is no evidence in support of its experience/connections for enabling export sales, commission on export sales also does not appear genuine, in the light of the finding of enquiry made above, which shows that the said partly had colluded with appellant in fraudulently providing entry for commission payment”. CIT(A)’s remarks “does not appear genuine”, itself shows that even the Ld. CIT(A) was not sure that such expense was non-genuine. Moreover, the Ld CIT(A) had not brought on record any evidence/ material to show that such expenses were not genuine. - Decided in favour of assessee.
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