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2020 (10) TMI 513 - AT - Income TaxAd hoc disallowance - adding 15% of the sub-agent commission involving payments - assessee distribution and commission agent business in communicative services - DR highlight the fact that assessee had failed to file the relevant detailed evidence before both the lower authorities - HELD THAT:- This taxpayer has acted as distributor / commission agent in telephone / mobile services and paid the impugned re-charge sum(s) to the sub-agents working in the field. Assessee said documents formed part of the assessment record. From certificate dated 18.02.2016 (much before the assessment order dated 08.03.2016) coming from the cellular operator M/s Reliance Telecom Limited making it clear that the corresponding e-re-charges amount involved a sum of ₹ 235,11,268 including commission of ₹ 113,06,268/- and re-charge(s) figure of ₹ 122,05,000/-; respectively as per the relevant understanding between the parties. There is no rebuttal to this clinching fact coming from the Revenue’s side. The assessee has also placed on record the relevant details of all the corresponding re-charge transactions. There is no prayer coming from the department side that the assessee’s certificate having placed on record all these documents is factually incorrect. Assessee has also placed on record profit and loss account at page 104 in the paper having disclosed net profit on turnover @ 6.92% not identify any abnormal trend vis-à-vis earlier and latter assessment years. This tribunals co-ordinate bench order in Gouranga Sundar Mondal [2018 (9) TMI 1997 - ITAT KOLKATA]also deleted identical disallowance in similar telephone income / mobile services distribution and commission business on the basis of cellular operators certificate - lower authorities have erred in law and on facts in making the impugned ad hoc disallowance @ 15% - Assessee’s appeal is allowed.
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