TaxTMI 
TaxTMI 
2016 (1) TMI 497
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....ting to Rs. 67,62,207/- expended by the assessee wholly and exclusively for the purpose of its business. The disallowance is unjustified, arbitrary and untenable in law and need to be deleted. 2. That the appellant craves leave to add, alter, amend or withdraw any ground or grounds of appeal before or at the time of hearing." 3. The assessee is a company. It is engaged in the business of distribution of Mutual Fund Schemes of various mutual fund houses for which it earns commission from mutual fund houses at specified percentages for different schemes. During the previous year the assessee earned total commission of Rs. 1,01,93,430/- from the mutual fund houses. The assessee paid commission of Rs. 67,62,027/- ....
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....ble to prove with evidence as to how and from he has received business. 4. Both M/s Dhoot Advisory Services (P) Ltd the assessee company and M/s Speedfast Finco (P) Ltd is not produce the date wise procurement of business form different parties along with evidence 5. As per claim of M/s Speedfast Finco (P) Ltd the business was procured throughout the year but the bill was raised only on 31.03 2009 for the whole year which is quite absurd considering volume of Business generated as claimed by M/s Speedfast Finco (P) Ltd. 6. The person received advance only on 30/03/2009 of Rs. 20,00,000/- and the entire amount only on June 2009. Th....
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....educe the tax burden of the assessee as well as that of SFPL. The following are the relevant observations of the CIT(A) in this regard : "10. The perusal of the assessment record of the appellant (M/s. Dhoot Advisory Services Pvt. Ltd.) had the copy of accounts of M/s. Speedfast Finco Pvt. Ltd. and it shows that it is assessed to income tax ender PAN AAECS7551 F as per the copy of intimation u/s 143(1) of the Act for AY. 2009-10. The AO has duly accepted the fact that the assessee has made payments to t e distribution agents and has not questioned the amount of service charges (commission) paid. The intimation u/s 143(1) of the Act or A.Y. 2009-10 of M/z.Speedfast Finco Pvt. Ltd. shows that it had incurred a loss....
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....he issue of genuineness of payment of commission by appellant to a loss making company and the various facts and circumstances as mentioned in para 5 to 10." Aggrieved by the order of the CIT(A) assessee is in appeal before the Tribunal. 4. We have heard the rival submissions of the ld. Counsel for the assessee and the ld. DR. The legal requirement for allowing deduction of account of commission is that the assessee submission that the services are rendered by the person to whom commission was paid. The evidence filed by the assessee in this regard shows the following position. 4.1. At page 36 is a letter by the assessee through SFPL dated 01.04.2008 whereby the SFPL was appointed as a sub-broker of the assessee. At page 35 is anot....