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Dy. CIT, Circle-2, Surat Versus Urvi Traders

2013 (6) TMI 822 - ITAT AHMEDABAD

I.T.A. No. 3217/Ahd/2010 - Dated:- 21-6-2013 - G. C. Gupta (Vice President) (AZ) And T. R. Meena (Accountant Member) For the Appellant : Y. P. Verma, Sr.D.R. For the Respondent : D. K. Parikh ORDER T. R. Meena (Accountant Member) This is an appeal filed by the Revenue arising from the order of ld.CIT(A)-II, Surat dated 16/09/2010 passed for A.Y. 2007-08. The sole ground of appeal is against deleting the addition made on account of disallowance of payment of commission and brokerage to agents of .....

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eding year, i.e. Asst.Year 2006-07. The assessee had debited an amount of ₹ 20,02,.789/- in the Profit & Loss Account under the head brokerage & commission . The AO has reproduced the details of commission and brokerage in the assessment order at page Nos.2 & 3. Commission expenses of ₹ 20,02,789/- on which TDS of ₹ 1,12,104/- was deducted by the assessee. The AO further stated that the commission payment varies from 2% to 4% and increased from ₹ 3,68,163/- to .....

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ced that the commission payment was made to lady members without justifying the genuineness of the services rendered by them. He further relied on the decision of Hon ble Supreme Court in case of Lachminarayan Madanalal 86 ITR 439 (SC). Finally, he found the brokerage and commission were excessive and he allowed upto 1% commission on ₹ 7,54,49,874/-, i.e. ₹ 7,54,498/- and remaining brokerage and commission of ₹ 12,48,291/- were added in the income of the assessee. 3. The assess .....

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collection from the customers but also full responsibility right from discharge of goods to payment of bill on time, i.e. these agents are like del credere . They are responsible for collection of the sales proceeds. The assessee realized the payment within 30 days from the date of the sale of good on which he has saved the interest of fund. The assessee had deducted the TDS from commission on which names of the deductee, addresses of all the persons whom the commissions have been paid could be .....

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the brokers, PANs, and addresses had been mentioned on each sale bill. The assessee further relied upon the decision of ITAT A Mumbai Bench pronounced in the case of ACIT vs. M/s.Anand Enterprises in ITA No.3782/Mum/08 for AY 2005-06, dated 19/01/2011 wherein identical issue had been dealt with the Coordinate Bench and the same is decided in favour of assessee. He further relied upon the judgement of Hon ble Jurisdictional High Court rendered in the case of Voltamp Limited vs. CIT 129 ITR 105(Gu .....

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