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2018 (8) TMI 844 - AT - Income TaxDisallowance of commission expenses paid in excess - CIT (Appeals) confirmed the addition as assessee could not substantiate the commercial exigency of such payment @ 7% as the other parties were paid commission @ 5% - Held that:- This is not the first year of the payment of commission to that party. The recipient of the commission income is also not related party under provisions of section 40A(2) of the Act. - The Revenue authorities are only authorized to see whether the expenditure has been laid out or expended by the assessee for the purposes of the business or not. Power to examine the reasonableness and adequacy of expenses - Held that:- Such powers are only available when the payment is made to a related party. It is not the case of the Revenue that the party has not rendered services to assessee. Additions to be deleted - Decided in favor of assessee.
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