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2012 (2) TMI 68 - ITAT JAIPURDis-allowance @ 8% of the commission paid to Taxi and Auto Drivers – CIT(A) enhanced dis-allowance to 10% - disallowance was made in A.Y. 2002-03 also - assessee challenging sustaining and enhancement of addition on the ground that procedure laid down in section 251(2) is not followed – Held that:- No notice u/s 251(2) has been given, therefore, enhancement by CIT (A) is not justified and the same is deleted. Regarding disallowance @ 8% by the AO, it is seen that the assessee was not required to produce the persons to whom commission has been paid. CIT(A) followed the order of the Tribunal for the A.Y.2002-03 in assessee’s own case whereas the assessment year under consideration is A.Y.2007-08. In between years no disallowance was made as stated by assessee. It is further seen that in the case of assessee’s father on similar facts where the disallowance was made @ 10%, ad-hoc disallowance was sustained at Rs.50,000/-. by Tribunal. Keeping in view the aforesaid, an addition of Rs.50,000/- is sustained against the addition of Rs.2,20,217/- - Decided partly in favor of assessee.
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