2016 (7) TMI 173

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....to the assessee. 2. The learned Commissioner erred in confirming disallowance of Rs. 24, 04,459/- without referring to any of the submissions made. 3. The learned Commissioner failed to appreciate that the product marketed is not sellable off the shelf and requires information about parties who require them and therefore the middleman is involved and it is not possible always to demonstrate that such middleman got the information from the ultimate buyer to demonstrate services for receiving commission, arid thereby erred in holding that the assessee has not discharged his onus of proving the requirement of payment of commission for business purpose. 4. The learned CIT (Appeals) failed to appreciate the fact that the AO relied mainly o....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....fy such payments. Assessee filed stereo typed confirmations from various parties. There were no details filed regarding payment made to others. Assessee did not file any details regarding the services rendered by these parties. Assessee further claimed that the payments have been made by cheques and TDS was made wherever required. AO issued summons and examined recipients of commission on oath and recorded their statements. The recipients of the commission, except one party, could not give any details of the services rendered by them to the assessee. They could not identify or give names of customers. AO gave an opportunity to the assessee to cross examine the persons whose statements were recorded, which was declined. Only one recipient ga....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....R regarding the exact rate of commission paid and what is the correlation between the sales and the commission paid. The AR produced the ledger a/c copies and we have carefully perused the same and other relevant documents on record, the orders of the subordinate authorities and we arrive at our considered view that in the ledger a/c there is no definite rate of commission that is paid, the commission is not paid on weekly basis or monthly basis. We find that it is mostly paid towards the end of the year. It has been already decided by the subordinate authorities after thorough inquiries that the assessee has paid commission which has no nexus either direct or indirect with his business. After verifying the ledger a/c, we are of the opinion....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e is from sale of mangoes and no evidence as to sale of agricultural produce nor evidence to claim that agricultural operations were carried were produced before the AO. In the absence of documentary evidence, the claim of agricultural income was disbelieved and the same was added to the income. Regarding the alleged gifts, assessee has not given any details, hence the AO has made addition of Rs. 48,200. Before the learned CIT (A) the AR could not justify his claims and accordingly the CIT (A) confirmed these additions as done by the AO. As per our considered view, since there is nothing on record to support the claim of the assessee and the subordinate authorities after conducting necessary inquiry have confirmed the said addition, we acco....