TMI Blog2011 (12) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... this regard. He has also deducted TDS and filed TDS returns and furnished PAN number of most of the parties. Therefore, expenses are allowed as deduction. - Decided against the revenue. - ITA 1249/2011 - - - Dated:- 8-12-2011 - MR. JUSTICE SANJIV KHANNA, MR. JUSTICE R.V. EASWAR, JJ. For Appellant : Mr. Kamal Sawhney, Sr. Standing Counsel SANJIV KHANNA, J: (ORAL) The present appeal filed by the Revenue under Section 260A of the Income Tax Act, 1961 (`the Act , for short) is directed against the order of the Income Tax Appellate Tribunal (the `Tribunal , for short) dated 29.4.2011. 2. The Revenue has raised two contentions/issues before us. 3. The first issue pertains to addition of Rs. 31,26,718/- on account of failure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT (A). For the sake of convenience we are reproducing the said stand, which reads as under:- 3.1 The Ld AR stated as below: The appellant gives cash discount to the customers who make the payment within 60 days of the raising of the bill. The accounting practice followed by the appellant is that when a bill of Rs. 1,00,000/- is raised, the parties account is debited and the sales account is credited by Rs.1,00,000/-. If the party does not make payment within 60 days, the accounting treatment remains unchanged. In case the customers makes payment within 60 days of Rs. 98,000/- (after availing of the discount), then the customer s account is credited by Rs.1,00,000/-, and bank account is debited by Rs.98,000/- and cash discount account is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted to be factually incorrect. The first ground fails. 6. The second condition/issue raised by the assessee pertains to payment of commission to 16 persons. The Assessing Officer disallowed the commission payment on the ground that the addresses of some of the recipients were same though the persons/individuals were different. In the assessment order it is also mentioned that in some cases PAN number or addresses were not finished. The Assessing Officer had recorded the following reasons:- The assessee company has submitted that commission or brokerage is being paid to agents, to book orders and take responsibility of collections or outstanding payment from customers on our behalf. It has further submitted that these are all genuine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produced during the course of hearing. In reality the appellant has produced the books of accounts and filed copies of bills relating to commission. As there was no specific question the same could not be answered, nevertheless the appellant paid commission to 16 parties out of which 14 persons are maintaining their PAN and the appellant has made TDS @ 5.1% on the said amount and quarterly TDS return is soft form has been filed evidencing the TDS payment made on such commission amount. 14.1 Considering the above, Ld. Commissioner of Income Tax (Appeals) observed that there is no material on record to suggest that these persons have done special job so that commission is given which is allegedly claim to be allowable u/s 37 of the Act. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... settled law that revenue authorities cannot sit into the shoe of the businessman. In this regard, we place reliance upon the decision of the Hon ble Apex Court in the case of CIT, Bombay Vs. Walchand and Co. Private Ltd. in 65 ITR 381, wherein it was held that in applying the test of commercial expediency for determining whether an expenditure was wholly and exclusively for business, the expenditure has to be adjudged from the point of view of the businessman and not of revenue . Accordingly, we hold that assessee has duly established that sufficient services were rendered for the payment of the commission involved in this regard. Accordingly, we set aside the orders of the authorities below on this issue and decide the issue in favour o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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