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2019 (6) TMI 1366 - AT - Income TaxDisallowance of commission payment - payee not found address provided by the assessee during remand proceedings - HELD THAT:- The transactions, in question, relate to F.Y 2008-09 while so, a verification during the month of July 2015 cannot give the correct fact as to whether Mr. Shah was at that address. He would have shifted. The assessee is right when she says that she cannot keep track of the person with whom she had done transactions. AO in the remand report confirms that the address given by the assessee is same that which was given by Mr. Shah in his PAN card. AO also confirms that Mr. D.R. Shah has filed his return of income for that particular assessment year. This confirms the identity of Mr. D.R. Shah. The genuineness of the transactions is proved by the fact an MOU was entered and that in each of the bills/invoices raised, the details of services rendered, the details of transactions for which commission was paid, was mentioned. Disallowance in question is bad in law. We direct the A.O to allow the claim of assessee of payment of commission. In the result, the ground of the assessee is allowed. Disallowance of Written off of bad debts - HELD THAT:- Assessee was not able to substantiate to the revenue authorities, as to whether the amount, in question, was taken into account in computing income of the assessee in any of the previous years. Thus, we hold that the amount was rightly disallowed u/s 36(1)(vii). Be as it may, the assessee had written off this amount as recoverable. This amount was held as a current asset by the assessee and has been written off in books of accounts after a number of assessment years on the ground that the same had been irrecoverable. the amount, in question, has to be allowed as the business loss u/s 37(1). The Assessing Officer is directed to do so.
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