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2019 (7) TMI 702 - AT - Income TaxAddition on account of payment of commission - bogus transactions - CIT(A) held that submissions of PAN card and registration certificate are not sufficient to prove the genuineness of commission payment. The assessee did not take steps in bringing the concerned persons of M/s. Wise Agencies Pvt.Ltd. for verification - no reply in response to the notice u/s 133(6) HELD THAT:- Fact remains admitted that the assessee filed all details relating to the transactions that have taken place with M/s. Wise Agencies Pvt.Ltd. before the AO. Even the resolution passed by the Directors to strike off its name off register before the Registrar of companies. Form FTE placed, an application seeking striking off was filed on 02.11.2011 and it is clearly shows that was well before date of assessment order. Not disputed that all the payments were paid through banking channel i.e. Account Payee cheques by deducting TDS evidence. Supporting the agreement between the assessee and M/s. Wise Agencies Pvt.Ltd. clearly shows that an agreement entered in respect of telecom companies namely Airtel, Aircel, Tata, Vodafone, Reliance and power cable, CESC and others by the assessee as first party and the second party therein i.e. M/s. Wise Agencies Pvt.Ltd. shall arrange permission and to help and resolve any problem arising in the site work. The first party i.e. the assessee agreed to pay 5% as commission for providing the services by the second party. Therefore, it is clear that there was an agreement between the assessee with M/s. Wise Agencies Pvt.Ltd. for which the assessee paid commission @ 5 %. We find that both the authorities did not examine and discuss the evidence filed by the assessee. Therefore, the finding of both the authorities below that the transactions between the assessee and M/s. Wise Agencies Pvt.Ltd. are bogus and not genuine which is in our opinion contrary to the evidence brought on record by the assessee. In the case of CIT vs M/s. Inbuilt Merchant Pvt. Ltd. [2014 (3) TMI 1107 - CALCUTTA HIGH COURT] of Hon’ble High Court of Calcutta wherein we find the AO held the transactions were not genuine as there was no reply in some cases and found no existence of such agents during the verification proceedings. The Hon’ble High Court of Calcutta held that no addition is maintainable for non-receipt of any reply and non-existence of the parties therein. - Decided in favour of assessee.
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