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2018 (11) TMI 429 - AT - Income TaxDisallowance of commissions expenses - Held that:- It has come on record that this assessee is engaged in highly level employees’ requirement business. He declared income from the said business activity amounting to ₹198.70 lakh along with commission of ₹79.55 lakh debited in the profit and loss account. AO disallowed a part thereof to the extent of the impugned sum of ₹51,56,694/- mainly on the ground that the corresponding parties did not support his case. All the corresponding payments have been subjected to TDS; wherever necessary. There has not been any enquiry on part of the AO to find out as to whether all these parties who have not supported assessee’s case have claimed the corresponding TDS credit or not is respective tax records. Coupled with this, we find that the AO has also not carried out the necessary verification on assessee’s ultimate customers/clients who have appointed the highly qualified personnel through the assessee. Thus uphold the CIT(A)’s findings deleting the impugned disallowance under challenge. - Decided against revenue. Deduction/ Exemption of LTCG u/s 54F - use of ground floor as commercial purpose and other three floor for residential purpose - The question that arises for our consideration is as to whether the CIT(A) has rightly apportioned assessee’s deduction to 25% is to 75%; floor-wise or not - Held that:- Our instant adjudication supports the CIT(A)’s action to this effect as he has rightly proceeded on an assumption that section 54F is a deduction provision to the liberally construed. This is not the Revenue’s case that the 3 floors of the building in question are not used for residential purposes. We therefore affirm the CIT(A)’s findings under challenge restricting the assessee’s deduction claim to the extent residential portion of the building only by treating the same to be “a residential house” as per the true legislative intent u/s 54F - Decided against revenue.
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