Political contribution deductions require assessee-specific proof before cash-back allegations can justify disallowance or unexplained-money additions...
The ITAT dismissed the revenue's appeal, upholding the order of the CIT(A) which reduced the addition for undisclosed commission income to 0.10% of total turnover. The Tribunal accepted the CIT(A)'s procedural remand to the AO, consideration of the remand report and the assessee's rejoinder, and reliance on a sworn statement by a deponent indicating commission receipts in the 0.05%-0.15% range. The ITAT also noted the CIT(A)'s analogous reliance on a coordinate-bench decision, and found no infirmity in treating the contemporaneous recorded statement and remand material as sufficient basis to sustain the reduced addition, resulting in dismissal of the revenue's appeal.
The ITAT dismissed the revenue's appeal, upholding the order of the CIT(A) which reduced the addition for undisclosed commission income to 0.10% of total turnover. The Tribunal accepted the CIT(A)'s procedural remand to the AO, consideration of the remand report and the assessee's rejoinder, and reliance on a sworn statement by a deponent indicating commission receipts in the 0.05%-0.15% range. The ITAT also noted the CIT(A)'s analogous reliance on a coordinate-bench decision, and found no infirmity in treating the contemporaneous recorded statement and remand material as sufficient basis to sustain the reduced addition, resulting in dismissal of the revenue's appeal.
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