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2018 (10) TMI 1177 - AT - Income TaxDisallowance of commission paid on sales affected during the year - eligible expense in the hands of the payer - Held that:- Mere fact that the recipient has offered the amount as his income doesn’t necessarily lead to a conclusion that the same will be allowed as an eligible expense in the hands of the payer. Merely crediting the account of Shri Sanjay Gupta at the year end and in absence of commensurate withdrawal or the payment by the assessee and where the same facts hold good even for past and the subsequent years, the instant transaction is in essence a transaction of share in profits though termed and reflected as commission for services. Similarly, we note that similar fact pattern emerges in respect of Smt. Annu Gupta for the instant year. As noted and examined the facts only for the instant year and it is important to examine whether similar fact pattern emerges for the other years where there is involvement of these two individuals in assessee’s business and in absence of that, the matter cannot be decided conclusively. Various other contentions so raised by the ld AR are therefore not commented upon and are thus kept open. We deem it appropriate to remand these two matters relating to commission back to the file of the Assessing Officer who shall examine the matter a fresh taking into consideration the above discussion after giving reasonable opportunity to the assessee. - decided in favour of assessee for statistical purposes.
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