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2019 (10) TMI 463 - AT - Income TaxAddition on account of commission paid and on account of salary - Allowable revenue expenditure - HELD THAT:- Since the assessee failed to produce relevant evidences and also failed to produce such persons for examination before the AO, therefore, the onus upon assessee to prove genuine commission was payable have not been discharged by the assessee. Merely because assessee dedycted TDS would not justified that expenses have been incurred wholly and exclusively for the purpose of business. Thus, commission payable has been rightly disallowed by the authorities below. The assessee in respect of the salary paid has failed to provide complete details before AO as well as failed to produce attendance register and the receipts given by the employees against payment of salary. The Ld. CIT(A) has already given sufficient benefit to the assessee. The assessee has parted with the substantial gross commission to others and has earned net profit at a meager figure. The assessee could not justify fall in the profit rate in assessment year under appeal to the satisfaction of the authorities below. No prudent person who has earned commission in crore would pay such an amount to others to earn only ₹ 8.78 lakhs. The history of the assessee noted above clearly show that assessee failed to produce any documentary evidences before the authorities below to justify the commission payable and salary to the above extent. In absence of production of such persons for examination before the AO also cast doubt in the explanation of the assessee that expenses have been incurred wholly and exclusively for the purpose of business of the assessee. Assessee has inflated the expenses just to reduce the taxable income. No interference is required in the matter. Therefore, confirm the order of Ld. CIT(A) and dismissed the appeal of assessee.
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