TaxTMI 
TaxTMI 
2015 (6) TMI 275
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....e of commission paid to various persons, as per particulars given below: (i) M/s Premier Ispat Pvt. Ltd. 12,47,248/- (ii) Kundan Castings Pvt. Ltd. 5,50,000/- (iii) Rainbow Mercantile Pvt. Ltd. 1,10,000/- Kolkata (iv) Shree Mahabali Electronics, Kanpur 18,000/- Total 19,25,248/- Deduct: Payment allowed on account of 1,00,000/- Services rendered by N. K. Bali Of M/s Premier Ispat Pvt. Ltd. Net disallowance 18,25,248/- 2. BECAUSE the appellant had led sufficient evidences in support of its contention that the payments had been made to the persons mentioned above, in lieu of rendition of services by them and in pursuance of valid and enforceable agreements in writ....
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..... 5,50,000 as made to M/s. Kundan Castings Pvt. Ltd., has been disallowed on irrelevant material and consideration and the same deserves to be restored. 6. BECAUSE as far as the appellant is concerned, it had fully discharged its onus of proving that the payments to each one of them had been made on business considerations and during the course of carrying on of business by the appellant and the same was liable to be allowed in full. 7. BECAUSE both the payees namely; (i) M/s. Premier Ispat Pvt. Ltd.; and (ii) M/s. Kundan Castings Pvt. Ltd., had been carrying on liaisoning activities as part of their usual business activities, for which they had accounted for huge receipts in their respective returns and on that conside....
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....payment realization and rate difference negotiation etc. for supply to M/s Modern Food Industries (India) Ltd. He also furnished copy of agreement dated 19th April 1999 between M/s Modern Food Industries (India) Ltd. with the assessee company in respect of supply of nutro biscuits of the assessee company to that company. He also submitted that the copy of the agreement between the assessee company and M/s Kundan Castings (P) Ltd. is available on pages 29 to 30 of the paper book. Regarding the remaining two parties i.e. Rainbow Merchantile Ltd. and Mahavir Electronics, to whom small amount of commission was paid, it was submitted that formal agreement with them is not available but copy of bill raised by Rainbow Merchantile Ltd. is available....
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.... of the assessee company with M/s Modern Food Industries (India) Ltd. As per this agreement, in case of any statutory revision in the tariff or rate of electricity and fuel during the pendency of the conversion contract, the conversion rate of nutro biscuits shall get revised accordingly from the date of such revisions. Hence, we find that as per this agreement, there was scope of revision in the rate and as per the agreement of the assessee company with M/s Premier Ispat Ltd., one of the scope of work of the agent was rate difference negotiation. One more scope of work of M/s Premier Ispat Ltd. was regarding payment realization. As per the agreement of the assessee company with M/s Modern Food Industries (India) Ltd., we find that there is....
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....ed to the public interest. In this regard, we find that when the agreement was already awarded by M/s Modern Food Industries (India) Ltd. to the assessee company in the year 1999 and the agreement with the commission agent is dated 01/04/2000 with M/s Premier Ispat Ltd. and on same date with Kundan Castings Pvt. Ltd., it cannot be said that these agreements with the commission agents were for effecting the decision making process of awarding contract by a PSU of Government of India. Therefore, this basis adopted by CIT(A) is not valid and justified. 7. We would also like to observe that in a case of supply to Government undertaking also, in spite of direct order/contract awarded by PSU, various formalities are to be completed by the supp....