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2023 (5) TMI 686 - ITAT AHMEDABADDisallowance of Commission expenses - business expediency - HELD THAT:- As assessee has given the details of return of income of those four parties, confirmation of payments as well as the TDS details. The summons issued u/s 131 of the Act was also responded thorough letters and, therefore, AO cannot say that the commission expenses are not actually incurred by the assessee. AO has totally ignored the business expediency for which the commission has been paid to these parties and for which the assessee has given all the details. AO as well as the CIT(A) was not right in disallowing the commission expenses. Disallowance of Interest expenses - assessee firm paid interest at the rate of 18% - The assessee has demonstrated before the AO as well as before the CIT(A) that the advances taken from the parties were for the business purposes and it was unsecured loans and, therefore, the assessee firm paid interest at the rate of 18% due to exigencies of the business. AR pointed out that charging 12% interest to the other parties will not influence the payment of interest while the assessee obtained loans as in need/urgency these parties have given loan to the assessee and, therefore, the assessee was obligated to pay the particular rate of interest. These aspects were totally ignored by the AO and hence the appeal of the assessee is allowed.
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