9911796707
TMI Blog2015 (10) TMI 2114X X X X Extracts X X X X X X X X Extracts X X X X ..... see filed his return of income for the assessment year 2009-10 on 30-09-2009 declaring total income of Rs. 27,51,680/-. The case of the assessee was selected for scrutiny. Accordingly, notice u/s. 143(2) was issued to the assessee on 18-08-2010. During the course of scrutiny assessment, the Assessing Officer observed that the assessee had made payments to the following related persons as commission/salary: Sl. No. Name Relation Amount 1. Shri Amish Deepak Poldiya Son Rs.2,60,640/- 2. Shri Nirav Deepak Poldiya Son Rs.3,48,000/- 3. Shri Urmil Kantilal Poldiya Nephew Rs.2,10,000/- 4. Ms. Rupal Nirav Poldiya Daugher-in-law Rs.96,000/- No details of the services rendered by the aforesaid persons were furnished by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f unexplained cash credits and disallowance u/s. 40A(3), the Commissioner of Income Tax (Appeals) rejected the contentions of the assessee and confirmed the findings of the Assessing Officer. Against the order of Commissioner of Income Tax (Appeals), the assessee has now come in second appeal before the Tribunal. 3. Shri Pramod Shingte appearing on behalf of the assessee submitted that the assessee is engaged in the business of Ginning and Pressing of Cotton in various manners. The entire family of the assessee is involved in the business for the last 15 years. The commission is paid to Amish Deepak Poldiya, Nirav Deepak Poldiya and Urmil Kantilal Poldiya on sale of cotton bales. As far as Rupal Nirav Poldiya is concerned the Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . AR prayed for setting aside the impugned order and allow the appeal of assessee. 4. On the other hand Shri B.C. Malakar representing the Department vehemently supported the findings of Commissioner of Income Tax (Appeals). The ld. DR contented that the assessee could not furnish any document to show that the commissions were in fact paid for extra services rendered by the persons closely related to the assessee. There is no evidence on record to show that the services were at all rendered by Amish Deepak Poldiya, Nirav Deepak Poldiya and Urmil Kantilal Poldiya. The assessee has already paid commission to Adatiya (commission agent) on sale of cotton bales. The Commissioner of Income Tax (Appeals) has given specific findings in this regard ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epak Poldiya, Nirav Deepak Poldiya (sons of the assessee) and Urmil Kantilal Poldiya (nephew of the assessee). The stand of the assessee is that in the earlier assessment years i.e. assessment years 2006-07, 2007-08 and 2008-09 the payment of commission has been allowed in scrutiny assessment proceedings. The assessee has placed on record the assessment order for assessment years 2006-07 and 2007-08 in support of his contentions. The Commissioner of Income Tax (Appeals) in his order has given a finding that the assessee has inflated its brokerage expenses by paying commission to his sons. There is no evidence on record of rendering extra services by sons/nephew in sale of cotton bales to justify receipts of commission. The sale/purchase of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer is satisfied with the genuineness of the documents placed on record before the Tribunal, the relief may be granted to the assessee. This ground of appeal is thus allowed for statistical purpose. Disallowance u/s. 40A(3) (iii). The third ground of appeal of the assessee is with respect to disallowance of payments Rs. 12,74,825/- u/s. 40A(3). The assessee had issued bearer cheques drawn on Janta Sahakari Bank Ltd., Jalgaon towards the payment for purchase of raw cotton from farmers. The Commissioner of Income Tax (Appeals) in the impugned order has given a specific finding that the examination of the cheques revealed that the assessee's sons Nirav Deepak Poldiya has signed on the back side of the cheque suggesting that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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