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TMI Blog2017 (12) TMI 1156X X X X Extracts X X X X X X X X Extracts X X X X ..... d to the various brokers. 2. The assessee in the present case is a partnership firm, which is engaged in the business of purchase and sale of DEPB License. The return of income for the year under consideration was filed by it on 26.09.2010 declaring total income of Rs. 1,58,403/-. In the Profit & Loss Account filed along with the said return, a sum of Rs. 34,78,933/- was debited by the assessee on account of commission paid to various parties. Although confirmations from some of the parties to whom the commission was paid could be produced by the assessee during the course of assessment proceedings, other documentary evidence in the form of bills raised by the said parties and other details regarding services rendered could not be produced ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted all the audited Statement of Accounts along with Tax Audit Reports to the AO., during the course of Scrutiny assessment. (Copy enclosed for your perusal) ; We hereby submit you the detailed statement of party-wise Commission paid, TDS ledger and Bank Statement of HDFC bank showing the particulars of TDS paid through that Bank, Copy enclosed. Your honour sir, during the course of the scrutiny, for the assessment year 2010-11, the Ld. Assessing Officer has wrongly observed and stated that the commission of Rs. 34,78,933/- paid to different parties are not being evidenced at all and based on the same he disallowed the same and computed the total income by disallowing the said commission paid of Rs. 34,78,933/-. However we have alrea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO should be guided by Rules of justice, equity and good conscience, and in making the best judgment the AO does not possess absolute arbitrary authority to assess any figure he likes. We may refer to the decisions of the case law, CIT Vs. Ranicherra Tea Co. Ltd.[1994] 207 ITR (Calcutta High Court) In view of the above, it is hereby prayed before you Sir, to delete those additions due to the fact that all these additions are erroneous and based on mere assumptions/ biased thoughts and without any material facts and totally unrealistic. The appellant craves leave to make further submission & produce further evidences/ documents during the Appeal proceedings for which it is, requested that adequate opportunity may be kindly be provide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments were made after deducting tax at source and could be verified from its books of account. It was also stated that the commission receipts and the fact of having rendered services was confirmed by the payees and payment of commission could be duly verified form its books of account and bank statements. In respect of Shri Vikas Khandelwal and Shri N. Rajesh Jain, HUF it was specifically contended by the appellant vide letter dated 03.11.2015 as under: "But in case of Sri Vikas Khandelwal, the party has been paid both by cash & Cheque, as per the verification of the AO from the bank statements of the said party, it shows Rs. 1,52,280/(net of TDS) has been credited to his account, instead of Rs. 2,79,813/-(net of TDS) paid to the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above facts and reports, it is clear that identity of the persons to whom commission was paid and inquired into by the AO has been established and they have confirmed receiving the commission with supporting evidence. Except in the cases of Shri Vikas Khandelwal and Shri N. Rajesh Jain (HUF), the amounts have also matched which have subsequently been verified by the Assessing Officer. As regards the discrepancies, all the payments claimed in N. Rajesh Jain (HUF) are reflected in the appellant's bank statement and in respect of Shri Vikas Khandelwal, some payments were in cash but tax was deducted at source thereon and paid in the Government Account by way of cheques. Thus, the discrepancies have been satisfactorily explained by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the business of the assessee is that of dealing in DEPB License and since the purchase and sale of DEPB License is normally done through brokers, expenditure is required to be incurred on payment of commission to them. He submitted that all the parties with whom enquiry was made by the Assessing Officer have confirmed of having received the commission from the assessee and there being nothing adverse brought on record, the disallowance of commission made by the Assessing Officer was totally unjustified which the ld. CIT(Appeals) has rightly deleted. He accordingly relied strongly on the impugned order of the ld. CIT(Appeals) giving relief to the assessee on the issue under consideration. 7. I have considered the rival submi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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