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2017 (4) TMI 957 - ITAT KOLKATA

2017 (4) TMI 957 - ITAT KOLKATA - TMI - Disallowance of commission - Held that:- Disallowance of commission cannot be sustained. As already seen, the payment of commission and the transactions for which Savita Industrial Agencies acted as an intermediary have been given from pages 6 to 20 of the assessee’s paper book. This contains the entire details of the transactions for which the recipient received commission and the contract for which he has acted as an intermediary, the value of the contra .....

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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 travelling expenses at 20% - Held that:- As we have already see .....

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yas Uddin, JCIT, Sr.DR ORDER Per N.V.Vasudevan, JM This is an appeal by the Assessee against the order dated 14.05.2013 of C.I.T.(A)-XXIV, Kolkata relating to A.Y.2009-10. 2. Ground No.1 raised by the assessee is general and calls for no specific adjudication. 3. Ground No.2 and 3 raised by the assessee can be conveniently decided together and these grounds of appeal read as follows :- 2. For that the Ld. C.I.T(A) erred in confirming the addition of ₹ 2,58,632/- being commission paid to Sa .....

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ssessee 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. T .....

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and 3 before the Tribunal. 6. The AO disallowed the aforesaid commission for the reason that (i) complete address of the parties was not submitted (ii) from the details of sales debtors and creditors, the AO found no party was stationed at the place where from the recipients of the commission operated and therefore it could not be ascertained as to what services were rendered by the recipients of the commission. (iii) no details of TDS whether deducted and deposited were furnished by the assesse .....

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ice of Savita Industrial Agencies and the person to whom it was supplied, quantity, value of the order and the commission payable 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 resp .....

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s.133(6) of the Act in the remand proceedings. 10. The assessee submitted before CIT(A) that all the documents to satisfy that the grounds on which the commission was disallowed by the AO were produced before the and there is no reason that the disallowance should be sustained. The assessee also pointed out that the rendering of services by the parties has been proved and similarly commission paid to the very same parties in the past was allowed as deduction in the assessment completed u/s 143(3 .....

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esponded to the notice issued by the AO u/s 133(6) of the Act, the services rendered by them could not be verified and therefore he sustained the disallowance made by AO. 12. Aggrieved by the order of CIT(A) the assessee has raised ground nos. 2 and 3 before the Tribunal. 13. I have heard the submissions of the ld. Counsel for the assessee and the ld. DR. The ld. Counsel for the assessee took us through the evidence filed by the assessee to substantiate his claim for deduction on account of comm .....

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was held that the evidence of services having been rendered should be available to allow commission payment as an expenditure. According to him the assessee failed to prove the nature of services in the present case. Hence the disallowance should be sustained. 14. After careful consideration of the rival submissions and the material on record, I am of the view that the disallowance of commission cannot be sustained. As already seen, the payment of commission and the transactions for which Savita .....

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