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2015 (6) TMI 90

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..... e evidences to show that the deductors have reversed the entries wrongly made by them in their original TDS returns by way of its revision." 2.On the facts and in the circumstances of the case and in law, the Ld. CJT('A) has erred in deleting the disallowances made by the AO an account of business promotion expenses of Rs. 10,98,4201-, electricity expenses of R5,98,2141- and rent payment of Rs. 1,18,840/- without appreciating the fact that the said expenses were incurred by the assessee in cash and inspite of sufficient opportunities has failed to produce bills/vouchers in support of these expenses and other details like names and addresses of the persons to whom the payment for these expenses were alleged to be made." 3."On the facts .....

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..... e as under. The assessee is carrying on business as commission agent and commission income was shown at Rs. 1,91,84,002/- from Twinkle Envirotech Ltd. and Royal Twinkle Star Club Ltd. and net profit before tax was declared at Rs. 1,51,39,106/-. From the details generated from ITS, it was found by the Assessing Officer that the assessee had received brokerage income of Rs. 2,73,97,631/- from Twinkle Envirotech Ltd. and Rs. 1,84,05,979/- from Royal Twinkle Star Club Ltd. Thus, total difference between the brokerage shown by the assessee in her profit and loss account and details generated from the system was computed at Rs. 2,66,19,608/- as per following table inscribed in para 5 of the assessment order:- 3.The assessee was required to expla .....

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..... ally received by the appellant. The correct commission received from Twinkle Envirotech Ltd. amount to Rs. 1,14,16,452/- and from Royal Twinkle Star Club Rs. 77,67,5501-. Hence there is no discrepancy. 2 Letters were written from this office to M/s.Twinkle Envirotech and M/s,Rcayl Twinkle Star Club for confirming the actual commission paid to the appellant. Both the companies have confirmed the figures which tally with appellants claim. 3 The bank account of the appellant do not reflect any additional commission receipts relating to these overstated figures. 4 The TDS credit claimed by the appellant also is proportionate to the amount received as commission. The deductor has also filed copy of 16A from which tallies with these figures. .....

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..... arties and their contentions have carefully been considered. After careful consideration, we found that learned CIT(A) did not commit any error in granting appropriate relief to the assessee. Right from the beginning it was the case of the assessee that it had earned total commission of Rs. 1,91,84,002/- from both the parties and confirmations were also submitted. The Assessing Officer disbelieved such contention of the assessee on the ground that the assessee failed to show as to whether entries made by those companies were reversed or not. If confirmations are filed by the assessee from the parties then without verifying the same the Assessing Officer could not add any further amount to the income of the assessee without discarding eviden .....

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..... e issue of deletion of business promotion expenses it was submitted by learned Departmental Representative that learned CIT(A) has wrongly deleted the entire addition and therefore order passed by learned CIT(A) on this issue should be set aside and that of the Assessing Officer be restored back. On other disallowances Ld. DR relied on the order passed by AO & submitted that Ld. CIT(A) has committed an error in granting relief to the assessee. 11.On the other hand, it was submitted by ld. AR that the complete details of name of persons were submitted to the Assessing Officer and these details are comprised at page No. 14 to 24 of the paper book. It was submitted that the amount ranges from 1600 to 2100 and assessee has earned huge commissi .....

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..... spect of telephone and 10% of expenses incurred on account of vehicle, car depreciation and periodicals/printing and stationery, meeting expenses, travelling and conveyance. He also upheld the disallowance to the extent of 20% in respect of gift expenses. Learned CIT(A) has also taken into consideration that according to the CBDT Instruction No.225/26/2006-ITA-II(Pt.) dated 8.9.2010, wherein guidelines for completion of scrutiny assessment selected on the basis of AIR information laid down and if disallowances are made in excess of Rs. 10 lakhs, then the Assessing Officer has to obtain prior permission/approval of the jurisdictional CIT to proceed with area of investigation other than AIR based scrutiny assessment. He observed that such ins .....

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