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2018 (10) TMI 1038 - HC - Income TaxDisallowance of 50% of the expenses paid as commission - allowable busniss expenditure u/s 37 - business consideration for the amount paid not proved - Held that:- The appellant claimed that she had paid commission for referring the students to her. The details of the students sent abroad was withheld on the ground that hard disc of the computer had crushed. No account was produced to substantiate that the record was being kept as to how much commission was paid to each of the persons, especially when the commission was paid on last day of the year. Inspite of the opportunities provided by the CIT(A) also the assessee was able to produce only 21 persons out of 43 who had received the commission. The recipients of commission, who appeared in the proceedings, were not able to give detail even of a single student which they had referred to the appellant. The deduction of TDS and payment made by cheque in itself would not be sufficient for claiming the deduction when even prima-facie business consideration for the amount paid was not proved. The contention of learned counsel for the appellant that the authorities could have done independent verification from the students, cannot be accepted. On failure of assessee to provide the relevant details like father's name, postal address etc, it was not possible for the A.O. to have undertaken any such verification. The contention of learned counsel for the appellant that the authorities could have done independent verification from the students, cannot be accepted. On failure of assessee to provide the relevant details like father's name, postal address etc, it was not possible for the A.O. to have undertaken any such verification. - decided against assessee.
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