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2023 (5) TMI 907 - AT - Income TaxDisallowance of commission payment - AO disallowed commission payment by taking a view that the assessee has failed to furnish evidence with regard to nature of work of business provided by those persons - HELD THAT:- CIT(A) confirmed the action of AO without giving any other reasoning. As before the AO the assessee furnished complete address of the persons, their PAN and amount of commission paid. The AO issued notice to such persons. AO has not specified to whom such notice was send or which notice was returned unserved. Before us assessee vehemently submitted that the AO issued notice u/s 133(6) only to two persons on test check basis, both responded and filed their reply. Both the commission agents has also filed their confirmation of commission. AO has not doubted the payment of commission to all 13 parties. The disallowance was paid only for want of evidence. AO has not investigated the matter except sending notice to two parties, who ultimately responded and filed their reply confirming the receipt of commission. No adverse material was brought on record even against such person, therefore, in absence of any adverse evidence - No justification of disallowance of commission payment - Decided in favour of assessee. Disallowance of salary expenses - HELD THAT:- Assessee furnished the name of six persons, alongwith their details of salary and their PAN numbers. AO vaguely recorded that he has sent notices under section 133(6) to some of the employee and some of them not responded to such notices. Two of the employees has filed reply to the notice issued by the AO admitting that they are employed with assessee and receiving salary. AO has not recorded in the assessment order whether any reply or confirmation was received from such person and vaguely noted that some of the notices were returned back. AO has not specified as to whom such notices were sent and the name of the persons whose notices were returned back. In absence of bringing any adverse evidence, AO was not justified in making disallowance of salary expenses. Decided in favour of assessee.
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