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TMI Blog2021 (10) TMI 1189X X X X Extracts X X X X X X X X Extracts X X X X ..... en the said assessment order was neither erroneous nor prejudicial to the interests of the revenue. 2. The learned PCIT erred in exercising powers u/s 263, when the jurisdictional conditions for the same had not been satisfied. 3. The learned PCIT failed to take into account the fact that the assessment order for AY 2015-16 was passed u/s 143(3) which is presumed to have been passed "only after taking into account all relevant material which the Assessing Off icer, ITO - 1(3)(2) - AO has gathered". Without bringing any further material on record which AC ought to have considered, the POT was not justified in concluding that the order was erroneous. 4. The learned PCIT erred in not following the order of the Hon'ble Income Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... either by email (e mail id of the Appellant Company registered and available on the DIT's portal) or speed-post or by hand delivery. 8. The Order of learned POT is against the weight of evidence, equity and natural justice. 9. The Appellant Company craves leave to add, alter or amend the above grounds of appeal." 2. The brief facts of the case are that the assessee company is engaged in the business of manufacturing and trading of electronic process controls. The assessee has filed the return of income for the A.Y 2015-16 declaring a total income of Rs.(-) 53,286/- and book profit u/s 115JB of Rs. 1,63,291/- and the return of income was processed u/s 143(1) of the Act. Subsequently, the case was selected for scrutiny under the C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as set aside the order passed u/s 143(3) for the A.Y 2014-15 as prejudicial to the interest of the revenue and directed the A.O to carry out the enquiries and verification of large commission expenses and make a fresh assessment and passed order u/s 263 of the Act dated 16.03.2020.Aggrieved by the order, the assessee has filed an appeal before the Honble Tribunal. 4. At the time of hearing, the Ld. AR submitted that the Ld. CIT(A) has erred in passing the revision order irrespective of the fact that the assessee has cooperated in the scrutiny proceedings and submitted the information, and complied with the notices. Further, the Ld. AR submitted on the disputed issue of claim of commission payments, The Honble Tribunal has granted the relie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. AR referred to the paper book and refered to the details of activities and the questionnaire issued. Further the Ld.AR emphasized on the Agency agreement between the assessee company and M/s Toshbro Controls Pvt Ltd. The Ld. AR demonstrated the statement showing the profit earned by the assessee due to the transactions of commission payment for the last five years at page 65 of the paper book. Further, the statement of commission received by M/s Toshbro Controls Pvt ltd on orders procured from various other parties referred at page 66 to 67 of the paper book. The Ld.AR also submitted that the assessment order does not satisfy the twin conditions of erroneous and prejudicial to the interest of the revenue. We find that the Pr. CIT has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n paid to sister concern is not to shift any prof its and the sales commission paid by the assessee should be allowed as deduction. 5. We have heard the rival submissions, perused the orders of the authorities below. On a perusal of the Assessment Order, we find that the Assessing Off icer disallowed sales commission paid to M/s. Toshbro Controls Pvt. Ltd. mainly on two grounds firstly the parties through whom M/s. Toshbro Controls Pvt. Ltd. made sales have stated that they have received material directly from the assessee company and M/s. Toshbro Controls Pvt. Ltd. is a loss making company and therefore he was of the view that in order to see that there is no tax incidence, the profits were shifted to the loss making company by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny infirmity in the order passed by the Ld.CIT(A) in allowing the claim of the assessee. Hence the order of the Ld.CIT(A) is sustained on this issue. 7. Further the Revenue has filed a Miscellaneous Application (M.A) against the Honble Tribunal order in MA No. 751/Mum/2017 dated 13.11.2017. The observations are at page 2 Para 4 of the order as under: "4. On hearing both the parties and perusing the order of the Tribunal, we find that the Tribunal on appreciation of facts on record taken a conscious decision in sustaining the order of the Ld.CIT(A) in deleting disallowance of commission expenses and restoring the issue of disallowance of travelling expenses to the file of the Assessing Off icer. In this Miscellaneous Application the Reve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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