Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (11) TMI 660 - AT - Income TaxAddition on account of Sales Commission - Bogus Expenditure - Non-deduction of TDS u/s 194H or 192 - Payment of commission of employees as part of salary or otherwise - whether CIT-A erred in upholding the addition on account of Sales Commission paid to employees of the company being not directly relating to Sales Department? - HELD THAT:- At the time of hearing, the learned counsel asked whether the appellant assessee has furnished detailed information regarding the nature of payments of the expenses claimed as sales commission and whether direct whether any TDS has been directed on such payments before the authorities below. Since the assessee has failed to furnish any information to establish that the payments were made towards the sales commission relating to promotion of sales and TDS the deduction on the sales commission thereof before the authorities below and in the present proceedings as well. Merely, the claim made by the assessee that the business of the Appellant is sales/purchase of liquor and all these employees are directly or indirectly related to sales of the company is not sufficient to hold that the findings of the authorities below are not tenable. In view of the matter, we do not find any infirmity or perversity in the observation and finding of the CIT appeal on the facts of the case. The order in the case of Subash Chander & Co. [2009 (1) TMI 357 - ITAT AMRITSAR] is not applicable to the facts of the present case of the assessee as in that case the Tribunal has dealt with the issue and genuineness and payments of 15% interest to the relatives u/s. 40A(2) whereas in the present case, the issue is claim of payment of sales commission against sales incentives paid as part of salary package to the employees of the assessee company without deducting TDS. Similarly, the judgment given by Hon'ble Apex Court in the case of "S.A. Builders Lt vs. CIT" [2006 (12) TMI 82 - SUPREME COURT] on the issue of commercial expediency is of no help to the appellant assessee because, the issue involved is claim of sales commission without TDS deduction in violation of provisions of the section 194H of the Income Tax Act, 1961. Considering factual matrix and legal intricacies, we find no merit and substance in the contentions of the appellants counsel and accordingly, the orders of the CIT(A) are sustained in upholding the addition on account of Sales Commission.
|