TaxTMI 
TaxTMI 
2011 (3) TMI 573
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....produce any record, bank pass book etc. to substantiate the agricultural income declared by him. Ld. CIT (A) failed to appreciate every year is a new year and agricultural income cannot be accepted on the basis of past history. 2. Ld. CIT (A) has erred in law and on facts in deleting the addition of Rs.9,00,000/- on account of disallowance from commission expenditure without appreciating the fact that necessary evidence were not produced before the Assessing Officer to substantiate his claim of commission expenditure. A general reply without the supporting documentary evidences does not discharge the onus laid on the assessee to substantiate the claim of any expenditure." 2. The assessee is an individual and indulged in the ....
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....as growing flowers and decorative plants which have been accepted by the revenue in past years. The assessee is holding the land of 24 bighas. Income of Rs.4,26,000/- have been accepted in the immediate preceding year, i.e. 2004- 05. In this year, income from agriculture is only Rs.2,50,000/-. Considering all these relevant facts and the pleadings of the assessee, we find that the CIT (A) has rightly accepted the claim of the assessee and we sustain the same on the issue. Accordingly, ground no.1 of revenue's appeal is dismissed. 6. In the ground no.2, the issue involved is deleting the addition of Rs.9 lacs made out of the commission paid to the assessee. 7. Learned DR relied on the order of the Assessing Officer. Learned A....
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....to whom commission paid, shows that she has worked for the business of the assessee and confirmed the receipt of the commission. She has also narrated the style of working in her statement by stating that she had direct contacts with the prospective purchasers which were mainly transport companies. She has also stated that she operated from the office of the assessee. She has stated that she had contacted the Government agencies for making sales effective. Her commission income had been assessed u/s 143(3) of the Income-tax Act by the DCIT located at Haldwani itself. We also note that the payment of the commission is business requirement in such type of business. The business of selling vehicles is of competitive nature and personal contact....