2017 (5) TMI 674

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....n both the appeals is identical, they were heard together and are being disposed of by this common order. 2. For the sake of convenience, we will take up the appeal of the assessee in I. T. A. No. 733/Chd/2012 and the decision given in this appeal will apply to other appeal of the assessee in I. T. A. No. 443/Chd/2015 mutatis mutandis. I. T. A. No. 733/Chd/2012 : Assessment year 2009-10 3. The only ground raised by the assessee reads as under : "That order passed under section 250(6) of the Income-tax Act, 1961 by the learned Commissioner of Income-tax (Appeals)-II, Ludhiana is against law and facts on the file inasmuch he was not justified to arbitrarily uphold the action of the learned Assessing Officer in disallowing commission amou....

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....nd only to make capital for filing returns of income they got cheques of commission from the assessee and returned back the amount in cash. The Assessing Officer therefore concluded that no services had been rendered by the agents and no commission had actually been paid by the assessee. He therefore disallowed the commission expense of Rs. 23,31,537 treating the same to be bogus expenses. The learned Commissioner of Income-tax (Appeals) upheld the disallowance made holding the expenses to be bogus in the absence of any evidence of services rendered by the agents and further since the assessee could not rebut the findings of the Assessing Officer. 6. Before us, the learned counsel for the assessee reiterated the submissions made before the....

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....the persons to whom the commission was paid, before the Assessing Officer. (iii) In response to summons under section 133, only 11 out of 15 persons appeared. (iv) In the statement recorded under section 131, three persons admitted that they returned cash to the appellant against the cheques received by them on account of commission payments. (v) None of the person have knowledge about the power press machines nor any experience in the line of selling these machines. (vi) All the persons stated that they had no links with the purchasing parties and met them incidentally. (vii) The persons to whom commission expenses claimed to have been paid stated that they merely introduced the purchasing parties to the appellant. Thereafter no ....

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....rly pointed out that no evidence with regard to the services rendered by these persons was submitted during the course of assessment proceedings. As mentioned above, even during the course of appellate proceedings no such evidence was submitted to substantiate its claim. From all the facts discussed above, it is my considered view that the Assessing Officer was fully justified in disallowing the commission of Rs. 23,31,537. This ground of appeal of the appellant is accordingly dismissed." 10. We find that the learned Commissioner of Income-tax (Appeals), on appreciation of the evidence on record has given a categorical finding of fact that no work was done by the agents for the assessee warranting payment of commission. This fact has not....