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India Steel Corporation Versus Income Tax Officer, Ward-35 (2) , KolKata

Disallowance of commission - assessee was claiming the commission expense on the basis of orders procured by commission agent but Authorities Below did rejected the same on the ground that commission expense which are corresponding to the sales made during the year should be allowed as deduction in the year under consideration - Held that:- We find force from the argument of Ld. AR that no such disallowance was made in earlier years and expenses were duly claimed in its books of account after ge .....

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Boards and once the order has been arranged then the commission agent is entitled for the commission on the value of such order arranged by him. In this point of argument, Ld. DR has not brought anything on record to controvert the argument raised by Ld. AR. - Decided in favour of assessee.

Disallowance of deduction u/s 80G of the Act on account of donation - Held that:- Ld. CIT(A) has disallowed the donation on the ground that assessee failed to submit the exemption certificate issu .....

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ember For the Assessee : Shri V. N. Purohit, AR & Shri H.V. Bhardwaj, AR For the Respondent : Shri R. P. Nag, JCIT-SR-DR ORDER Per Waseem Ahmed, Accountant Member Both appeals by assessee are arising out of order of Commissioner of Income Tax (Appeals)-XX, Kolkata dated 02.07.2014. Assessments were framed by ITO Ward-35(2), Kolkata u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) vide his orders dated 21.03.2013 & 28.03.2014 for assessment years 2010-11 & .....

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For this, assessee has raised following effective ground:- (1) That the Commissioner of Income Tax (Appeals)-XX has erred, both on the facts and circumstances of the case and in law in confirming the addition of ₹ 24,37,169/- of claim of Commission. 3. Facts in brief are that assessee is a partnership firm and engaged in the manufacturing business of electric transformer and similar other products used by various Electricity Boards and their Distribution units. During the year, assessee h .....

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ainst commission expense at ₹ 23,09,937/- only but for the payment of commission of ₹ 24,37,169/- no sale was booked during the year. Accordingly, AO disallowed the excess claim of commission expense for the sum of ₹ 24,36,169/- on the ground that this expense should be booked in its books of account in the year when the related sales will be recorded in its books of account also. Hence, the commission amount of ₹ 24,37,169/- was disallowed and added back to the total inc .....

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ear under consideration was correctly allowed by AO. Being aggrieved by this order of Ld. CIT(A) assessee came in second appeal before us. 5. Before us Ld. AR filed paper book having pages 1 to 75 and submitted that assessee is following to recognize the commission expense on the basis of orders procured by commission agent and not on the basis of actual sale booked in its books of account. This payment to the commission agent was made after deducting TDS. The commission agents used to raise the .....

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issue may be decided on merit. On the other hand, Ld. DR submitted that the commission expenses corresponding to sales booked by the assessee should be allowed as deduction as no services rendered by the agents in connection unrecorded sale. Ld. DR further submitted that issue of commission arose first time during the year and same was not looked upon in the earlier years so, this does not mean the commission expense should be allowed on the basis of consistency. He vehemently relied on the ord .....

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AR that no such disallowance was made in earlier years and expenses were duly claimed in its books of account after getting the bills from the concerned parties and after TDS deduction. We find that services rendered by commission agents have not been doubted by the Authorities Below. We further find that assessee s claim of commission expense on the basis of bills raised by commission agents for the value of orders arranged by them consistently and these were allowed in the past years also. We .....

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