2017 (8) TMI 226

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....ion at para 7 of his order dated 22/03/2016 that 'the appellant has not produced before the AO and during appellate proceedings the nature of services taken from the Commission Agents. This observation is not true as the complete nature of services availed from the agents and reason for paying the commission was filed before the AO and this fact was also discussed in the assessment order and not disputed by him. 3. Because in spite of placing all the facts before the CIT(A), it is wrong of the CIT(A) to sustain the addition of RsA,36,684/- made by the AO on account of excessive commission paid to agents. 4. Because the appellant paid commission to agents not as a percentage of sales value, as has been presumed by the A....

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.... commission expense in this year during the assessment proceedings. It was explained before the A.O. that the commission of Rs. 217000/- has been paid in A.Y. 2011-12 for last four months. Whereas, the commission has been paid for the entire assessment year 2012-13. The assessee explained that the commission was paid only on the sale of Soda Ash and it has been paid for the complete financial year relevant to the A.Y. 2012-13 and sale of Soda Ash has increased by Rs. 50 lacs as compared to the last year. However the A.O. was not satisfied with the explanation of the assessee and allowed commission @ 0.67% (relevant to A.Y. 2011-12) at Rs. 515116/- i.e. disallowed balance commission of Rs. 436684/- and assessed the total income of the assess....

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.... Sale of Soda Ash Sale of Paper Total Sales 2011-2012 INR 5.76 Crore INR 3.84 Crore INR 9.62 Crore 2012-2013 INR 6.21 Crore INR 1.27 Crore INR 8.28 Crore 8.1 Therefore, it is crystal clear from the above that while total sales did indeed decrease during A.Y. 2012-2013 as compared to A.Y. 2011-2012, due to substantial decrease in sales of paper, the sales of soda ash itself increased between the two financial years. During the F.Y. 2010-2011, due to recurrent issues related to quality of product of soda ash-a by-product (not paper-a virgin product) which often required the Assessee to intervene personally at any point of time as the process of the user is continuous, the Assessee appointed various agents in....