TMI Blog2015 (8) TMI 1493X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO should have enquired through the sales man of the commission agent or through the buyers of the products of the assessee in order to verify the actual commission given to M/s.Wide Angle Packaging System (P)Ltd for doing the sales on behalf of the assessee against commission. The assessee has paid commission by account payee cheque. Due TDS paid, identity of the commission agent is verifiable which are sufficient evidence on record to prove the genuineness of the transaction and creditworthiness and identity of the so called commission agent. The entire commission is allowable. This ground of appeal is allowed. Disallowance made by AO from 15% to 10% out of various revenue expenses - HELD THAT:- Looking into the nature of the expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of M/s. Mahavir International in which he is doing trading business of stamping foils. During the F.Yr. ending 31.3.2007 the assessee has made a turnover of ₹ 2.06 crores and had paid commission of ₹ 8,41,537/- after deducting tax at source of ₹ 42,912/- to M/s. Wide Angle Packaging System P. Ltd. the director of M/.s. Wide Angle Packaging System P.Ltd. Shri Milan Kumar Mehra. AO examined the claim of depreciation to be genuine that is identity of the so called commission agent, genuineness of the transactions and creditworthiness. AO in his assessment order was of the opinion that the assesee did not discharge his onus and gave the following findings :- The assessee has not discharged the initial onus of provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at an amount of ₹ 8,41,536/- shown by the assessee as alleged commission is bogus and added back to the total income of the assessee. Now aggrieved the assessee went in appeal before CIT(A). The CIT(A) in his order stated that 4.2. I have perused the assessment order and considered the submission of the appellant. The fact of the case is that the AO found that the appellant made payment of ₹ 8,41,537/- towards commission but genuineness of the transaction was not proved. The appellant argued that payment of commission was made to M/s. Wide Angle Packaging System (P)Ltd on which tax was deducted and the payment was made through cheques. However, the fact remains that the appellant failed to prove either befor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents of the company. The AO should have enquired through the sales man of the commission agent or through the buyers of the products of the assessee in order to verify the actual commission given to M/s.Wide Angle Packaging System (P)Ltd for doing the sales on behalf of the assessee against commission. The assessee has paid commission by account payee cheque. Due TDS paid, identity of the commission agent is verifiable which are sufficient evidence on record to prove the genuineness of the transaction and creditworthiness and identity of the so called commission agent. In view of the above I am of the view that the entire commission is allowable. This ground of appeal is allowed. 5. The second issue in this appeal of assessee as r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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