TMI Blog2019 (5) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... sion made by the AO. Now coming to the third category of disallowance where no details made available by the assessee about the nature and services rendered, the AO issued notice u/s 133(6) of the Act but satisfactory reply was not received. In some cases notice u/s 133(6) could not be served. In the case of Misc. commission expenses no details were filed. Rates of commission also varied from 2% to 15 % but no proper explanation was given. Thus where the assessee is unable to satisfy the lower authorities about commission expenditure claimed, we find no reason to interfere in the well reasoned finding of the CIT(A) disallowing the commission expenditure computed @ of 30% of the commission expenditure - Decided partly in favour of assessee. - ITA No.394/Ind/2014 - - - Dated:- 7-5-2019 - Kul Bharat, Judicial Member And Manish Borad, Accountant Member For the Appellant : Shri Kailash Agrawal Prakash Gupta,CAs For the Revenue : Shri V.J. Boricha Sr. DR ORDER PER MANISH BORAD, A.M: This appeal at the instance of Assessee pertaining to A.Y. 2009-10 is directed against the order of Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the assessing officer and Ld. CIT(A) wherein they have partly accepted the commission expenditure which itself prove that genuineness is not doubted. 7.Per contra Ld. DR vehemently argued supporting the order of both the lower authorities. 8. We have heard the rival contentions and perused the record placed before us and gone through the details filed in the paper book submitted by the assessee. 9. Ground No.1: Disallowance made at ₹ 2,89,786/- by treating the same as related to earlier years, whereas the same are allowable during the year in question and hence, it is prayed that the amount may kindly be directed to be allowed as claimed. 10. As Ld. counsel for the assessee has requested for not pressing this ground, therefore, ground No.1 is dismissed as not pressed. 11. Ground no.2. ii. Disallowance made at ₹ 74,098/- on account of notional interest disallowed on advances granted at ₹ 5,48,877/- whereas nothing is liable to be disallowed and hence it is prayed that the disallowance so made may kindly be directed to be allowed. 12. As reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Particulars Amount i. No details made available by the assessee about the nature and services rendered ₹ 17,13,766/- ii. Identity and confirmation filed but details of services not provided ₹ 7,13,888/- iii. 50% of commission expenses of ₹ 24,92,372/- disallowed being excessive ₹ 12,46,186/- Total: ₹ 36,73,840/- 17. When the issue came up before the ld. CIT(A), he sustained the addition at ₹ 14,45,707/- by making ad hoc disallowance of 30% of the total commission expenses of ₹ 48,19,026/- observing as follows: Ground No.4 of appeal is against disallowance of claim of commission expenses of ₹ 36,73,850/-. The AO has disallowed such commission for various reasons. The facts of the case are that the t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt possible about such commission agents in form of their confirmation letter, nature of their work, copy of their return of income showing such commission income etc. 8.3 Considering the submissions of appellant as well as various unexplained issues related to commission agents as discussed in para 8.1, as disallowance of 30% of the commission expenses claimed i.e. ₹ 14,45,707/- (30% of ₹ 48,19,026/-) will serve the end of justice. As a result out of commission disallowance made by AO of ₹ 36,73,850/-, as disallowance of ₹ 14,45,707/- is confirmed and appellant gets a relief of ₹ 22,28,142/-. As a result this ground of appeal is partly allowed. 18. On perusal of the above finding of Ld. CIT(A) as well as in the given facts and circumstances of the case and documentary evidences places on record, we observe that as regards the disallowance of commission @ 50% of ₹ 24,92,372/- made by the Ld. AO there is no specific finding by Ld. AO about questioning the genuineness of the expenditure and as Ld. AO has himself allowed 50% of the commission expenses. Identity proof and details including confirmation and income tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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