2016 (3) TMI 310

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....he facts of the case are that the assessee declared sales of Rs. 24,78,70,238/- inclusive of Rs. 3,90,17,944/- on account of Service charges in its Trading account. During the course of assessment proceedings, the AO called for details of sales on which commission was paid and on which commission was still payable. Such details filed by the assessee have been incorporated on pages 3 onwards of the assessment order. After going through two Annexures filed by the assessee in this regard, the AO observed that there was a difference of Rs. 6,15,68,134/- between two figures, namely, Rs. 18,21,12,483/- as per Annexure-7 and Rs. 12,05,44,349/- as per Annexure-1. He noted that whereas Annexure-7 contained 74 bills, Annexure-1 had only 61 bills. Rep....

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....n on the same score. We, therefore, uphold the impugned order in deleting this disallowance. This ground is not allowed. 5. Ground no. 2 is against the deletion of disallowance of Rs. 60,19,438/- made by the AO on account of unexplained commission payment where corresponding sales had not been credited by the assessee to the Trading and Profit & Loss Account. This ground is, in fact, consequential to ground no. 1. It is seen from break-up of total turnover and total commission, as discussed supra, that there is complete detail of commission on sales to the tune of Rs. 1,27,77,515/- which figure matches with the amount of deduction claimed by the assessee in its Profit & Loss Account. All the 13 items of sales totaling Rs. 6.15 crore have b....

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....en ONGC and the assessee. It was claimed that pursuant to this Agreement, the assessee got technical assistance from its parent company for which the said payment was made. However, on a specific query, no Agreement, between the assessee and parent company evidencing the nature of work done and remuneration for such technical assistance was placed on record. In the absence of any such Agreement, it is difficult to understand the nature of work for which the assessee made the payment and also its quantification. We, therefore, set aside the impugned order on this issue and remit the matter to the file of AO for deciding this point afresh in the light of the material placed or to be further placed by the assessee in support of technical fee p....