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of <h1>Revenue's appeal allowed due to lack of evidence on commission rate, remanded for fresh consideration. Cross objection dismissed.</h1> <h3>Asstt. Commissioner of Income Tax 4 (1), Indore Versus Smt. Gunvanti N. Sanghvi</h3> The revenue's appeal was allowed for statistical purposes as the Tribunal found that the CIT(A) did not adequately address the lack of evidence for ... - Issues Involved:1. Deletion of addition on account of commission expenses claimed by the assessee.2. Cross objection supporting the deletion of disallowance of commission expenses.Summary:Issue 1: Deletion of addition on account of commission expenses claimed by the assesseeThe revenue was aggrieved by the order dated 20th November 2012, which deleted the addition of Rs. 77,32,430/- made on account of commission expenses claimed by the assessee. The Tribunal noted that the issue was covered by an earlier order dated 19th July 2013 in the case of a sister concern. The Assessing Officer had disallowed the commission expenditure due to lack of evidence proving the services rendered by the commission agents. The CIT(A) deleted the addition, observing that the appellant engaged in business with Government departments through commission agents, and payments were made through bank cheques. The CIT(A) also noted that the commission payments were reflected in the agents' tax returns and no disallowance was made u/s 40A(2)(b). The Tribunal found that the CIT(A) did not address the Assessing Officer's findings regarding the lack of evidence for services rendered and the exorbitant commission rate. Consequently, the Tribunal set aside the CIT(A)'s order and restored the matter to the Assessing Officer for fresh consideration.Issue 2: Cross objection supporting the deletion of disallowance of commission expensesThe assessee's cross objection supported the CIT(A)'s order deleting the disallowance of Rs. 77,32,430/-. However, given the Tribunal's decision to restore the matter to the Assessing Officer, the cross objection was deemed infructuous and dismissed.Conclusion:The appeal of the revenue was allowed for statistical purposes, and the cross objection of the assessee was dismissed as infructuous. The Tribunal directed the Assessing Officer to follow the directions of the Tribunal and decide the issue afresh.
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