TMI Blog2017 (4) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed to prove the nature of services rendered. As rightly contended by the ld. Counsel for the assessee, if the AO was serious in verifying the nature of services rendered by the recipients nothing prevented him from issuing summons u/s 131 of the Act to enforce the attendance of Savita Industrial Agencies. The position of the other parties Shri Shyam Marketing service and Yashwant Mourya are also identical. Also find that expenditure on account of commission to the aforesaid three parties has been claimed in A.Y.2008-09 and allowed by the AO. This fact also goes to show that the claim of the assessee is genuine and calls for no disallowance. - Decided in favour of assessee Disallowance of telephone expenses, conveyance expenses and tra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the same was duly confirmed by the commission agent and the services rendered were also confirmed. 4. The Assessee is an individual. He is engaged in the trading and manufacturing of engineering goods. It was the plea of the assesee that there was a fire in the assessee s business premises in February, 2011 i.e. on 03.02.2011 at No.13, India Exchange Place, Kolkata-700001 where the assessee had a table space in the second floor where all the papers and documents and records relating to the business affairs of the Assessee were kept. All those papers, documents and records got destroyed in the fire. This fact is not disputed by the revenue. 5. The assessee while computing its income from business had claimed expenses on account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yable to them and the details of TDS. These documents are placed at pages 6 to 20 of the assessee s paper book. 8. Similarly in respect of Shri Shyam Marketing service the general ledger account and the particulars of transaction for which commission was due and payable was given by the assessee and the same is placed at pages 21 and 22 of the assessee s paper book. In respect of Yashwant Mourya the general ledger and correspondence giving complete details of the transaction for which commission was payable was also given and the same is placed at pages 23 to 25 of the assessee s paper book. 9. Since these details were filed before CIT(A), the CIT(A) called for a remand report from the AO. In his remand report dated 23.11.2012, the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The ld. Counsel for the assessee took us through the evidence filed by the assessee to substantiate his claim for deduction on account of commission. It was highlighted by him that if the AO wanted to ascertain certain other details from the aforesaid three parties nothing prevented him from enforcing their attendance by issuing summons u/s 131 of the Act. Having failed to do so, the AO could not be heard to say that services rendered by the recipients of the commission could not be verified. The ld. DR relied on the decision of ITAT, Kolkata C Bench in the case of United Traders Co. vs TRO (2012) 27 taxmann.com 293 (Kol.) wherein it was held that the evidence of services having been rendered should be available to allow commission pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and calls for no disallowance. For the reasons given above I direct that commission paid to Savita Industrial Agencies, Shri Shyam Marketing service and Yashwant Mourya be allowed as deduction. Ground nos. 2 and 3 raised by the assessee are allowed. 15. Ground no.4 raised by the assessee reads as follows :- 4. For that the Ld. C.I.T(A) erred in confirming the addition of ₹ 14,629/- from telephone expenses, ₹ 55,856/- from conveyance expenses and ₹ 37,720/- from travelling expenses fully incurred for business purposes. 16. As can be seen from grounds of appeal, the disallowance of telephone expenses, conveyance expenses and travelling expenses at 20% of the expenses claimed by the Assessee was made by the AO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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