TMI Blog2018 (4) TMI 1578X X X X Extracts X X X X X X X X Extracts X X X X ..... fixing site visit measurement etc. for which commission agents have rendered the service as these agents are having experience in work and expertise of government supply. Therefore, requirement of Representatives for doing such jobs cannot be denied - Decided against the revenue. - ITA NO.92/2017, ITA No.93/17, ITA No.94/17 & ITA No.96/17 - - - Dated:- 13-4-2018 - SHRI JUSTICE P.K. JAISWAL AND SHRI JUSTICE SUNIL KUMAR AWASTHI For the Appellant : VEENA MANDLIK For the Respondent : None JUDGMENT Ms.Veena Mandlik, learned counsel for the appellant. Learned counsel for the appellant has submitted that the issue involved in these appeals is squarely covered by the order dated 01.02.2018 passed in ITA No.231/2017, ITA N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laring total income at ₹ 42,46,450/- for Assessment Year 2008-09, ₹ 75,05,690/- for Assessment Year 2009-10 and ₹ 70,24,250/- for Assessment Year 2011-12. The Assessing Officer found that in Profit Loss Account, a sum of ₹ 15,75,307/- has been shown as commission paid to Madhya Pradesh Laghu Udyog Nigam Limited (MPLUN). Simultaneously, commission amounting to ₹ 72,54,473/- has been debited as paid to other persons. The claim was allowed without making any inquiry. During the assessment proceedings for Assessment Year 2009- 10, the assessee failed to prove the genuineness of the payment to sister concern; hence, proceedings for Assessment Year 2008-09 were set aside under Section 263 of the Income Tax Act, 196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7 (Annexure A/3) passed by the Income Tax Appellate Tribunal, Indore Bench, Indore in ITA No.498, 497 and 499/Indore/2016 reads, as under: - 7. On the other hand, the Ld. Counsel for the assessee supported the order of the ld. CIT (A) and submitted that the allegation of the Revenue is that the business related to Government supplies, no commission is required. However, it was submitted that the MPLUN is merely facilitators and the actual buyers are PWD and IDA and, therefore, representatives of the assessee collects the orders from these Department and also collect due for the assessee-firm. They facilitate the quantity measurement of goods supplies or work executed and complete the formality, follow up the payment and carry out variou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was filed with the agents with their tax returns, their affidavits and PAN details etc. Therefore, the genuineness of expenses as well as identity has been established. Hence, the ld. CIT (A) was correct in deleting the dis-allowances made by the AO. 8. We have considered the facts, rival submissions and perused the material available on record. On going through the assessment record as well as findings of the ld. CIT (A), we find that the assessee has submitted detailed evidences like names of the agents, PAN numbers, describing services rendered by the Agents, confirming the transaction, details of the TDS made, Bank account details with returns of income of agents. The AO has also examined these person on oath by summoning them under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon by the ld. Authorized Representative of the assessee, the Hon'ble High Court in the case of CIT vs. Pure Pharma, (2005) 144 Taxman 364 (MP) in para 3 and 4 held as under: - 3. A few facts material for deciding the said appeal, in short, may be mentioned as under: The Respondent / assessee company is engaged in manufacturing and sale of pharmaceutical formulations. During the previous financial year, the assessee had paid total commission of ₹ 13,35,336/-. Out of this, a sum of ₹ 10,24,290/- was paid as commission on sales made to the Government and its agencies and a sum of ₹ 3,11,046/- was paid as commission to non- Government purchases. Since, a doubt was raised with regard to the payments made to variou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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