TaxTMI 
TaxTMI 
2015 (1) TMI 352
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the launched projects of big builders/ developers and was an authorized dealer/ agent/ broker of various dealers/ developers. The modus operandi of the assessee was that as and when a builder announces its project, the assessee used to underwrite the builders/ developers project and then in turn starts booking of the property through various sub-dealers/ agents/ brokers, as and when directed by itself. For the purpose of bookings, the assessee maintained offices at various locations and also opened temporary offices at the project sites of the developer. 2.1. The persons who managed and controlled the offices for the purposes of bookings were allowed sub-commissions instead of remuneration and similarly the sub-dealers/ agents/ brokers ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the part sustenance of disallowance @ 10% in respect of advertisement expenses. 3. Ground no. 1 of revenue's appeal challenges the deletion of addition of Rs. 4,43,927/- made by the AO on account of Marketing expenses inclusive of incentive and discounts. 3.1. We have considered the rival submissions of the parties and have perused the record of the case. At the out set ld. Counsel for the assessee submitted that this issue is covered by the ITAT Delhi Bench 'G' order dated 27-5-2011 in ITA no. 4854/Del/2010, rendered in assessee's own case for A.Y. 2007-08, observing as under: 5. We have duly considered the rival contention and gone through the record carefully. Section 194H has a direct bearing on the controversy. Therefore, it is sa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....igam Limited or Mahanagar Telephone Nigam Limited to their public call office franchisees. Explanation. - For the purposes of this section :- (i) "commission or brokerage" includes any payment received or receivable, directly or indirectly, by a person acting on behalf of another person for services rendered (not being professional services) or for any services in the course of buying or selling of goods or in relation to any transaction relating to any asset, valuable article or thing, not being securities; xxxx" 6. The expression "commission or brokerage" has been explained in the explanation appended to this section. According to the meaning provided in the explanation, the commission would be considered, if any person received it di....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... interfere in the order of CIT(A) on this count. Ground is dismissed. 4. Ground no. 2 raised by the Revenue challenges the deletion of addition of Rs. 5,50,970/- made on account of commission paid to Shri Gaurav Mukhija u/s 40A(2)(b). 4.1. Brief facts, apropos this issue, are that assessee had claimed an amount of Rs. 10,95,471/- under the head "Commission". The assessee's contention was that the commission was paid to various parties for procuring pre-launch booking. The assessing officer required the assessee to prove the genuineness of the expenses. The assessee's reply has been reproduced in para 4.2 at page 5 of the assessment order, in which the assessee, inter alia, gave details of services rendered by the persons to whom commissio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ect on his own without the help of others. Therefore, the service of others was taken by the assessee. The assessee had opened the office on various locations and for the said purpose either the assessee had to manage there or it had to be managed by engaging some other persons. The assessee allowed remuneration to such persons on commission basis, on the basis of their performance by way of bookings. It was further pointed out that Shri Gaurav Mukhija controlled and managed the Gurgaon office of the company and the commission was allowed to him on the basis of procurement of the prelaunched bookings wherein the Gurgaon office was instrumental. It was further pointed that Shri Gaurav Mukhija was having mobile no. 9810531773 and this mobile ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the assessing officer disallowed 20% of such expenses. In appeal ld. CIT(A) restricted the disallowance to 10%. Aggrieved by the order of ld. CIT(A), both the parties are in appeal before us on their respective grievance. 5.2. Ld. Counsel for the assessee at the out set contended that the issue in question is squarely covered in favour of the assessee by the order of the ITAT in assessee's own case for A.Y. 2007-08, rendered in ITA no. 4554/Del/10 vide order dated 27-5-2011, deleting the addition in question by holding that the expenses were incurred exclusively for the business purposes and no disallowance deserved to be made. 5.3. On the other hand, ld. DR relied on the order of AO. 5.4. We have heard rival submissions and perused the....