2013 (6) TMI 822

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....8 was completed u/s.143(3) of the Act on 27.11.2009 by the Asst.CIT, Circle-2 Surat. The firm is engaged in the business of manufacturing and trading of grey cloth. During the year, the firm had shown GP of ₹ 38,00,518/- @ 9.22% on total turnover of ₹ 4,11,91,980/- as against the gross profit of ₹ 8,53,947/- @ 7.65% on total turnover of ₹ 1,11,59,234/- shown in the immediately preceding year, i.e. Asst.Year 2006-07. The assessee had debited an amount of ₹ 20,02,.789/- in the Profit & Loss Account under the head "brokerage & commission". The AO has reproduced the details of commission and brokerage in the assessment order at page Nos.2 & 3. Commission expenses of ₹ 20,02,789/- on which TDS of ₹ 1,12,....

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.... He further held that the assessee had sold 70% of grey cloth to Bombay party, the commission agent from Bombay had undertaken the work not only the collection from the customers but also full responsibility right from discharge of goods to payment of bill on time, i.e. these agents are like "del credere". They are responsible for collection of the sales proceeds. The assessee realized the payment within 30 days from the date of the sale of good on which he has saved the interest of fund. The assessee had deducted the TDS from commission on which names of the deductee, addresses of all the persons whom the commissions have been paid could be verified and necessary enquiry could be made as to the genuineness of the services rendered by them.....