https://www.taxtmi.com/caselaws?id=449479 The ITAT Kolkata allowed the assessee's appeal against disallowance of commission payments. The AO's inquiry was deemed flawed as summons u/s 131 were issued to recipients across different states with impractical timelines for service and response. The AO failed to examine business necessity of expenditure and incorrectly applied jurisprudence regarding unexplained share application money. The assessee had made payments through RTGS/account payee cheques, provided recipient details and income tax returns, and showed profits rather than losses. The CIT(A) passed an ex-parte order dismissing the appeal for want of prosecution despite available submissions. ITAT found expenses were incurred for legitimate business purposes with adequate supporting documentation. en-us Wed, 17 Jan 2024 00:00:00 +0530 Tue, 13 Feb 2024 10:17:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=449479 The ITAT Kolkata allowed the assessee's appeal against disallowance of commission payments. The AO's inquiry was deemed flawed as summons u/s 131 were issued to recipients across different states with impractical timelines for service and response. The AO failed to examine business necessity of expenditure and incorrectly applied jurisprudence regarding unexplained share application money. The assessee had made payments through RTGS/account payee cheques, provided recipient details and income tax returns, and showed profits rather than losses. The CIT(A) passed an ex-parte order dismissing the appeal for want of prosecution despite available submissions. ITAT found expenses were incurred for legitimate business purposes with adequate supporting documentation. Case-Laws Income Tax Wed, 17 Jan 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=449479