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2016 (6) TMI 584

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....03.2014 for assessment years 2010-11 & 2011-12 respectively. 2. Since common grounds are involved in both the appeals of assessee except figurers, therefore they were heard together and are being disposed of by way of this common order for the sake of convenience. First we take ITA No.1750/Kol/2014 for AY10-11. 2. First issue raised in this appeal of assessee is that Ld. CIT(A) erred in confirming the action of Assessing Officer by disallowing the commission expense of Rs. 24,37,169/- on account of sales not made during the year. For this, assessee has raised following effective ground:- "(1) That the Commissioner of Income Tax (Appeals)-XX has erred, both on the facts and circumstances of the case and in law in confirming the addition....

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....through account payee cheque after deducting TDS. There was no disallowance in the earlier years made by AO and the assessee claimed such expenses. However, Ld. CIT(A) rejected the claim of assessee by observing that "commission attributable to the sales declared in the year under consideration was correctly allowed by AO." Being aggrieved by this order of Ld. CIT(A) assessee came in second appeal before us. 5. Before us Ld. AR filed paper book having pages 1 to 75 and submitted that assessee is following to recognize the commission expense on the basis of orders procured by commission agent and not on the basis of actual sale booked in its books of account. This payment to the commission agent was made after deducting TDS. The commission....

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....rce from the argument of Ld. AR that no such disallowance was made in earlier years and expenses were duly claimed in its books of account after getting the bills from the concerned parties and after TDS deduction. We find that services rendered by commission agents have not been doubted by the Authorities Below. We further find that assessee's claim of commission expense on the basis of bills raised by commission agents for the value of orders arranged by them consistently and these were allowed in the past years also. We also find that assessee having the arrangement with the commission agent for procuring the orders from the Electricity Boards and once the order has been arranged then the commission agent is entitled for the commission o....