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2019 (9) TMI 907 - AT - Income TaxDisallowance of commission expenses - bogus expenses - HELD THAT:- Commission paid to Shri Deepak Kumar Tripathi, Vikash Pandey and Md. Danish Hussain were in respect of sales of the assessee’s product in the State of Uttar Pradesh. Though, there was no agreement or any other supporting evidence except their statement/confirmations. Once the A.O. has examined these parties and confirmed having rendered services then the claim in respect of these three parties cannot be denied. As the business of the assessee for selling of its products in the State of Uttar Pradesh is not in dispute and it is also not in dispute that the assessee has not claimed any other expenditure regarding travelling in respect of sale in the State of Uttar Pradesh, therefore, commission paid to three parties namely Shri Deepak Kumar Tripathi, Shri Vikash Pandey and Mohd. Danish Hussain are allowable deduction being incurred for the purpose of business. As regards the commission paid to Ms. Preeti Tripathi, Ms. Pushpa Tripathi and Deepak Kumar Tripathi (HUF), it is apparent that these are only the name facilitated by Shri Deepak Kumar Tripathi and Shri Vikash Pandey for inflating the expenditure by the assessee. Therefore, in absence of any material to show that these other persons even are competent to render the service, the claim of commission paid to the related parties Shri Deepak Kumar Tripathi and Vikash Pandey is not found to be genuine. Hence, in the facts and circumstances of the case, the claim of the assessee is allowed in respect of Shri Vikash Pandey and Mohd. Danish Hussain and the balance amount of disallowance is sustained. Appeal of the assessee is allowed in part.
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