TMI Blog2019 (5) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... o. Therefore, the order of the CIT(Appeals) in respect of commission payment to Shri Navneet Bagdi is modified and the Assessing Officer is directed to allow the entire payment . Disallowance u/s 35(1)(ii) - Assessee involved in the sham transaction under the garb of donation - HELD THAT:- The very fact that the transaction ultimately ended in refunding the money to the assessee through banking channel after reducing the commission to the extent of 5% shows that the money has come back to the assessee. This is the transaction arranged in such a way that the accommodation entries were made at several entities level and ultimately the money came back to the assessee. Herbicure Healthcare Bio-Herbal Research Foundation of Kolkata involve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative for the assessee, submitted that the assessee met with an accident and suffering head injury for the last several years. According to the Ld. representative, the assessee is carrying out his business through sales commission agents for procuring orders and other business related activities. The assessee paid commission to various agents who rendered service for procuring orders, collection, etc. According to the Ld. representative, the Assessing Officer disallowed the entire payments. In respect of the assessee s son Shri Navneet Bagdi, the assessee has paid a sum of ₹ 2,89,112/-. The Assessing Officer, however, disallowed the entire payment. On appeal by the assessee, according to the Ld. representative, the CIT(Appeals) restri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bagdi is modified and the Assessing Officer is directed to allow the entire payment of ₹ 2,89,112/-. 6. Now coming to the disallowance of ₹ 3,50,000/- under Section 35(1)(ii) of the Act. 7. Shri N. Vijay Kumar, the Ld. representative for the assessee submitted that the assessee made donations to the institutions through banking channel. Therefore, according to the Ld. representative, the CIT(Appeals) is not justified in disallowing the donations under Section 35(1)(ii) of the Act. 8. On the contrary, Shri AR.V. Sreenivasan, the Ld. D.R. submitted that the assessee has made donation to one Herbicure Healthcare Bio-Herbal Research Foundation of Kolkata. According to the Ld. D.R., th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the assessee. Herbicure Healthcare Bio-Herbal Research Foundation of Kolkata involved in the fraudulent and sham transactions, providing accommodation entries and claiming bogus weighted deduction to the extent of 175%. The antecedents of the recipient were unearthed by the Department during the course of survey operation. The material available on record clearly establishes that the so-called donation ultimately received back by the assessee after reducing the commission. Therefore, the CIT(Appeals) in a very reasoned order found that the assessee involved in the sham transaction under the garb of donation. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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