2012 (12) TMI 1092

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....accepted the claim of the assessee with regard to the payment of commission by the assessee. The Assessing Officer through on the spot enquiry has agreed with the contention of the assessee that commission payment upto 30% of sales proceeds are made to drivers and commission agents for bringing the tourists to the assessee, who runs a silk emporium.  The remand was silent about the TDS deduction on the commission payments by the assessee under section 194H of the Income-tax Act. The appeal was filed before the Hon'ble Income Tax Appellate Tribunal interalia on the ground that the assessee had denied the liability of deduction of TDS on commission paid during the assessment proceedings. However, he furnished details before the ....

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....the same was forwarded to the Assessing Officer for his report.  The Assessing Officer made a spot inquiry/surprise check on 28/10/2010 and during the course of inquiry conducted, it was found that the assessee has been incurring expenditure by way of commission to the drivers and the commission agents, who were responsible for bringing the customers to the business premises of the assessee.  It was also found that the commissions were paid to the tune of 20% to 25%.  The Assessing Officer, subsequent to the inquiry conducted, sent his remand report to the CIT(A).  In view of the remand report being favourable to the assessee, the CIT(A) deleted the addition made on account of disallowance on payment of commission. 6.....

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....(ia) which was not commented on by the Assessing Officer in the remand report submitted to the CIT(A). 7. The Tribunal affirmed the CIT(A)'s order with regard to the deletion of the addition made by the Assessing Officer amounting to Rs. 1,39,50,088/-. 8. For non-consideration of ground nos.3 and 4 mentioned above, the revenue has filed this Miscellaneous Petition. 9. The learned DR and the learned counsel for the assessee were duly heard. 10. We have heard the rival submissions and perused the materials on record. It is an admitted fact that the commission payments were by cash varying from Rs. 1500 to Rs. 2400/-.  The Assessing Officer disallowed the commission paid in excess of 2% by observing thus: "The commiss....