AI Drafter 
TaxTMI 
TaxTMI 
2018 (2) TMI 1637
X X X X Extracts X X X X
X X X X Extracts X X X X
....propylene mats. The assessee filed its return of income for the impugned assessment year on 23-09-2010 declaring total income of Rs. 16,52,680/-. The case of the assessee was selected for scrutiny under CASS. Accordingly, statutory notice u/s. 143(2) of the Income Tax Act, 1961 (hereinafter referred to as "the Act") was issued to the assessee on 25-08-2011. During the course of scrutiny assessment proceedings, the Assessing Officer observed that the assessee has paid commission to the tune of Rs. 1,10,43,495/- on export sales. During the period relevant to assessment year under appeal, the total sales of assessee were Rs. 8,75,66,509/- out of which export sales were Rs. 5,23,63,798/-. On enquiry made by the Assessing Officer, it transpired ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Ld. CIT(A) was correct in deleting the addition made by the A.O. equating the commission paid by the assessee as a discount. When in the present case the commission was paid separately. 3. Whether on facts and in the circumstances of the case the Ld. CIT(A) was justified in holding that no addition was made on this count in earlier years whereas all the Assessment Proceedings are different from each other as held by various judgements. 4. Whether on facts & circumstances of the case the Ld. CIT(A) was correct in not appreciating the discrepancies in commission paid Export bill wise detected by the Assessing Officer. 5. On the facts and in the circumstances of the case, the order of the AO be restored and that o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aring on behalf of the assessee vehemently supported the findings of Commissioner of Income Tax (Appeals) in deleting the disallowance. The ld. Counsel for the assessee submitted that after hiring the services of commission agent, the export sales of assessee increased many fold. The assessee started availing services of commission agent in Financial Year 2008-09. Prior to that in Financial Year 2007-08 the export sales of assessee were merely Rs. 13,34,800/- which arose to Rs. 5,23,63,798/- in Financial Year 2009-10 (relevant to the assessment year 2010-11). Thus, there is multiple fold increase in export sales of assessee. To show comparative analysis of export sales over the period of time, the assessee referred to chart at page 64 of th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sing the appeal of Revenue. 6. We have heard the submissions made by representatives of rival sides and have perused the orders of authorities below. We have also considered the case laws on which the ld. DR has placed reliance. The solitary issue raised by the Revenue in appeal is against deleting the addition of Rs. 1,10,43,495/- in respect of commission on export sales paid to Mrs. Marjan Vossough Modaress. It is an undisputed fact that sales commission was paid by the assessee in the earlier assessment year, as well as subsequent assessment years on the basis of same agreement. The Assessing Officer accepted payment of sales commission as allowable expenditure without raising any doubt with respect to genuineness of the agreement or ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e a fundamental aspect permeating through the different assessment years has been found as a fact one way or the other and parties have allowed that position to be sustained by not challenging the order, it would not be at all appropriate to allow the position to be changed in a subsequent year." ii. A perusal of comparative analysis of export turnover in the past two assessment years show that after appointment of commission agent, the export turnover of the assessee in terms of volume and Revenue has substantially increased. Thus, the benefit of appointment of commission agent to the assessee is apparent from the records itself. iii. It is prerogative of the assessee to decide, whether to appoint a commission agent or no....