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TMI Blog2021 (2) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... you to resolve the following:- 1. Whether the contention of Ld. CIT (A) is justified in being completely ignorant and rejecting the appeal despite of the fact that: 1- The revenue model upon which business is based on. 2- The usual market practice of the industry in which assessee is dealing with. 3- Agreed Contract between the assessee and his marketing channel. 2.Wherein extract of the CIT (A) order states that:- "Appellant has filed written submissions, the relevant portion of which is reproduced as under:- The revenue model of the assessee is such that it is using the digital platform of Homeshop 18 (hereinafter referred as 1IS18) for which HS18 collects the amount of sales consideration from customers directly and remit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the expenditure has to be adjudged from the point of view of the businessman and not ofthe Income-tax Department. It is, of course, open to the Appellate Tribunal to come to a conclusion either that the alleged payment is not real or that it is not incurred by the assessee in the character of a trader or it is not laid out wholly and exclusively for the purpose of the business of the assessee and to disallow it. THE HONOURABLE SUPREME COURT DECIDED TO ALLOW THE GENUINE BUSINESS EXPENDITURE OF THE ASSESSEE U/S 37 OF THE ACT. Reference of Case Law - CRYSTAL Chemie (P) Ltd versus Assistant Commissioner of Income Tax. 42 DTR (Ahd) (Tribunal) 197 where it was held that Commission payable to another company based on the quantity specified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their unreliability. Reliance is placed on judgments in case of Amit Verma, New Delhi vs Department Of Income Tax (ITAT), where the Tribunal ruled that: "Assessing Officer has not pointed out any specific defects in the books/records. Moreover, the books of accounts have been duly audited; the details were submitted before the Assessing Officer. The Assessing Officer has not invoked section 145(3) and he has not rejected the books of account. Under the circumstances, adhoc disallowance is without any basis and do not stand the test of judicial scrutiny." Similar judgment was passed in case of M/s Vijay Infrastructure Limited Vs ACIT (ITAT, Lucknow) and various other cases. Whether the contention of the Ld. AO that assessee could no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s of Rs. 61,93,667/- paid by the assessee during the year under consideration, 30% of the commission expenses which were worked out to Rs. 18,58,100/-, was disallowed by the Assessing Officer in view of the non-production of documentary evidences to support high commission paid. The learned CIT(A) also upheld the disallowances. Being aggrieved, the assesee is before the Tribunal raising the grounds as reproduced above. 3. Before us, the parties appeared through Video Conferencing facility and filed documents electronically. 4. The learned counsel for the assesee submitted that the commission was paid to the digital platform company i.e. Homeshop 18, who sold goods of the assessee through their digital platform. The learned counsel for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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