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2024 (2) TMI 630 - ITAT KOLKATADisallowance of commission payment - ex-parte order paased by CIT(A) - HED THAT:- Assessee had made most of the payments through RTGS or Account Payee Cheque. It has given the details of those recipients including copies of their income tax returns. Validity of assessment order - Enquiry by Assessing Officer - AO issued notice u/s 143(2) on 04.09.2014. Thereafter he issued a questionnaire on 23.11.2015, i.e. the proceeding remains dormant more than one year. He started the inquiry in November, 2015 and passed the assessment order on 08.03.2016. According to him, he has issued notice under section 133(6), which was returned back. Thereafter he has issued summons u/s 131 dated 04.02.2016 directing those individuals to appear before him on 11.02.2016. Looking at recipients, first party is in Kolkata, but the next party is from Jaipur, Rajasthan and third one is from Delhi. How these summons u/s 131 could have been served upon them within a week and they could revert back to AO. It is practically impossible. It is not ascertainable whether these summons have ever served upon or not. Therefore, the inquiry at the end of the ld. Assessing Officer is a flawed one. AO nowhere examined how this expenditure was not necessary for the business. What are the products obtained by the assessee as a commission agent and how these were sold with the help of different parties across India. Assessee has not shown losses rather it has shown profit. Instead of approaching the controversy with that approach, AO all of a sudden took help of jurisprudence which deals with unexplained share application money from paper companies. This shows the careless attitude at the end of AO while framing the assessment order. On appeal, ld. CIT(Appeals) has totally ignored all these submissions, which are available on the Portal but dismissed the appeals for want of prosecution. It is very difficult to make understand the grievances of the assessee before the authority on an overall appreciation of the evidence available before us. We are satisfied that these expenses were incurred for the business purposes during the course of business. The assessee has submitted all basic details. The Officer failed to cross verify these details - Assessee appeal allowed.
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