9911796707
TMI Blog2012 (2) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... hort) pertain to the assessment years 1998-99, 2000-01, 2001-02, 2002-03 & 2004-05. We are inclined to dispose of these appeals by this common order as the issue raised is ibidem and identical. The appeal for the assessment years 2000-01 to 2002-03 were disposed of by the Income Tax Appellate Tribunal (Tribunal, for short) vide order dated 25th February, 2011 and the appeals for the assessment years 1998-99 and 2004-05 were disposed of by the tribunal vide order dated 31st May, 2011. 2. We note one distinguishing factor in respect of assessment year 1998-99. The tribunal by an earlier order dated 24th April, 2003 in ITA No.1814/2002 had passed an order of remit and restored the matter to the Assessing Officer to examine the question the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. The CIT (Appeals) referred to the factual matrix/accounts and had highlighted the fact that the assessee had claimed commission expense of Rs.3.34 crores and discount of Rs.14.58 crores during the year. Out of this, commission of Rs.22,94,485/- was paid to various agents in respect of supplies made to State Road/Municipal Transport Corporation/Undertakings. The Assessing Officer had disallowed commission payment on the supplies made to the State Road/Municipal Transport Corporation/Undertakings and not in respect of other sales. We may only note here that the figures are virtually identical or similar in other years. The CIT(Appeals) allowed the appeal of the respondent-assessee but restricted the claim of commission to 4.5% of the tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it note for price difference/excise duty etc. within 120 days from the date of debit notes. (v) To submit a brief monthly report." 7. It was noticed that the respondent-assessee has effected sales to private parties through agents and payment of commission to the said agents has been accepted. Further the payment to the agents have been made directly. The tribunal records the said agents were not bogus or non-existing parties, and there was no such allegation or finding. Their addresses and PAN numbers were furnished to the Assessing Officer. The agents were paid by crossed cheque, only after realization of bills from the State Road/Municipal Transport Corporation/Undertakings. The tribunal further observed that as per the agreements the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee. (2) Payments have actually been made by account payee cheques. (3) Most of the agents were working for the assessee for the last so many years and rendering similar services. These agents are Income-Tax assessees. (4) These agents were recognized by the Association of State Road Transport Undertaking. (5) The AO has not brought any evidence on record to show and establish that the payment made by the assessee to commission agents for rendering various services to the assessee is prohibited by law or is an office or is against the public policy. The AO has stated so merely on his assumptions and presumptions without considering the various services rendered by the commission agents to the assessee since last so many years. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s arrived at without any material or if it is arrived at or inference is made on material which would not have been accepted or relied upon by any reasonable person. It is based on surmises, conjectures or suspicions and is not rationally possible. A factual conclusion is regarded as perverse, when no person duly instructed or acting judicially could upon the record before him, have reached the conclusion arrived at the tribunal/ authority. [See CIT Vs. S.P. Jain (1973) 87 ITR 370 (SC)]. On the basis of material referred to and the reasoning given by the tribunal it is no possible to hold that findings recorded are rationally illogical, inconsistent with the facts on record or not supported by evidence and material. The appeals are dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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