2022 (11) TMI 478 - AT - Income Tax
Addition on account of commission and brokerage paid - genuineness of services rendered - purchase of land from land owners - HELD THAT:- We note in this admitted factual backdrop that the assessee acted on behalf of the said company and purchased lands from various land owners which ultimately stood transferred to the company. He had claimed the impugned payments involving 74 persons in total transactions of Rs.16.72 crores. There is further no quarrel that all the payments had been made through banking channel and list of recipients had also been submitted before lower authorities. We find that the AO expressed his disagreement with the impugned expenditure commission claimed which ultimately stands accepted in the CIT(A)’s order.
Coming to our reason for not agreeing with either party submits, we find that neither the assessee had been able to prove each and every head of claim nor the AO had called him to substantiate the same regarding all the 74 persons as we are concerned with only 9 parties herein.
Faced with this situation and in the light of the fact that all the land owners/payees herein are agriculturists who randomly joined the assessee cause of clubbing the lands for setting up windmills and allied activities for M/s. Suzlon Gujrat Wind Park Ltd (an undisputed fact in assessment), we hold that a lump sum commission disallowance of Rs.12.21 lakhs cash component out of that in issue of Rs.1,68,33,800/- would be just and proper with a rider that the same shall not be treated as a precedent. The CIT(A) details findings deleting the impugned commission/expenditure disallowance of Rs.1,56,12,800/- are upheld in very terms. - Revenue’s appeal is partly allowed.