TMI Blog2014 (3) TMI 393X X X X Extracts X X X X X X X X Extracts X X X X ..... uded in the term 'relative' as per Section 2(41) of the Act. This aspect is not at all concerned with regard to rejection of plea of the assessee and with making of addition in his income. It was on entirely different grounds. All the three revenue authorities on facts had come to one and the same conclusion and there is concurrent finding that payment of commission shown in books of accounts of the assessee was merely a subterfuge to reduce the tax liability of the assessee – as such no substantial question arises from the appeal – Decided against Assessee. - I.T.A. No.111 of 1999 (O&M), I.T.A. No.112 of 1999 (O&M) - - - Dated:- 28-2-2014 - Rajive Bhalla And Dr. Bharat Bhushan Parsoon,JJ. For the Appellant : Ms. Supriya Garg, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals), Ludhiana [hereinafter mentioned as, the CIT(A)] vide his order dated 29.1.1993 (Annexure P-2) affirmed the said addition of Rs.1,74,484/- on account of commission paid though gave relief with regard to some other additions which had been made by the AO. 6. Agreeing with this order (Annexure P-2) of the CIT(A), the Tribunal vide a joint order (Annexure P-3) upholding the re-opening of assessment by the CIT(A), gave no relief to the assessee with respect to the addition made by the AO when it affirmed order of the CIT(A) in this regard. 7. This appeal was admitted for hearing on 21.8.2000. Following substantial questions of law were posed for adjudication by the appellants: i) Whether in the facts and circumstances of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her or sister or any lineal ascendant or descendant of that individual 10. It is then urged that when there is no application of provisions of Section 2 (41) of the Act to the facts of the case, no resort could be made to provisions of Section 40A (2)(b) of the Act. It is further urged that income tax authorities are not expected to question quantum of remuneration or commission paid to their employees by the assessee as in the conduct of his business, the assessee is to pay for the skills and acumen of his employees commensurate to their abilities. 11. Per contra, claim of the revenue is that entire evidence given by the assessee qua engagement of Anil Kumar Gupta and payment of huge commission to him was analysed and evaluated by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase of a plot from the assessee and on which interest had been paid to the appellant and which was sought to be set off by the payment of commission which had merely been credited to the account of Shri Gupta but factually not paid. 13. The AO had also noticed that there was no material on record to prove that there was any contribution made by Anil Kumar Gupta, more than his liaison work which he was already doing, to the assessee's business to justify payment of huge commission to him. It had also been noticed by the AO further that business of the assessee rather had not shown any improvement during the assessment years under consideration i.e. 1989-90 and 1990-91, when huge commission was allegedly paid by the assessee to sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal has very ably dealt with the entire aspect. Following observations made by the Tribunal, with approval, are reproduced as below: Much has been argued about the applicability of Section 40A(2)(a) and whether nephew was included in the term relative . In our opinion, this aspect of the matter need not be gone into as it has been the case of the AO and even of the CIT(A) that the agreement is same and entered into only for purposes of reducing the tax liability of the assessee. The CIT(A) in his wisdom has thought it necessary to refer to the said section but, in our opinion, such reference is not fatal to the case of revenue as we after perusing the record, the arguments advanced by the parties and the factual findings re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee was merely a subterfuge to reduce the tax liability of the assessee. It is to be noticed that the Tribunal had re-assessed the entire issue and without being influenced by the earlier two concurring findings, had independently also come to a finding that the claim on account of commission by the assessee was not tenable in the assessment years under appeal and that it had rightly been rejected. 19. As the entire issue in these appeals concerns facts and attending circumstances and there is nothing legal much less substantial to be adjudicated upon, no substantial question of law, in fact, arises for consideration in these appeals. The questions posed by the assessee thus need not be answered as the same are based on facts. Consequen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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