TaxTMI 
TaxTMI 
2019 (4) TMI 1166
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....but simply puts the entire blame on the appellant without any basis for frivolous reasons like bad/ illegible handwriting on stamp sale register . Moreover, the report appears to be a copy of the erstwhile AO's story, described in original order of assessment. The AO did not conduct independent inquiry from even a single customer as directed by Hon'ble CIT (A).Hence, directions flouted. 3.The additions are solely made on the assumption that assessee had to furnish the name and addresses of the customers which is contrary to the directions given by the CIT(A) to the AO calling remand report and as such the blame of inaction on the part of appellant fails. 4.That the Id respondent erred in not appreciating the independent third party confirmations, affidavits and orders of comparable cases etc, which were vital and cogent evidences to justify the expenses claimed. Moreover, Id. AO disbelieved the same without cross verifying it. 5. The Id respondent did not exercise its powers vested u/s 131 & 133(6) of the IT Act, for calling/summoning the customers and parties in spite of specific written request made by the appellant, therefore, the addi....
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....; "4. All these grounds are primarily related to disallowance of commission paid to the customers buying stamps of Rs. 10,10,287/-. I have gone through the assessment order (already reproduced above) especially the reasons cited by the AO for making the addition. I have also carefully considered the submissions made by the appellant in this regard. The same have already been reproduced above. Since, the major grievance of the appellant was of not providing opportunity to file customer's affidavits with regard to substantiating the claim of the appellant; it was decided to remand the matter to the AO with a direction to provide opportunity to the appellant to file the relevant evidences in its support. I would like to reproduce here the relevant para and the concluding remarks of the AO in the remand report:- "During the course of appellate proceedings, Hon'ble Commissioner of Income Tax-Il, Indore called for remand report from this office. Accordingly notices were issued to the assessee calling for evidences in support of his claim of commission payment. In response, the assessee filed stamp sale register for the relevant period which contains the details ....
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.... hesitation in confirming the additions so made by the AO. These grounds of appeal are dismissed. 5. Aggrieved assessee is now in appeal before the Tribunal. 6. Ld. Counsel for the assessee took us through the paper book running from page 1 to 164 filed on 28.2.2019 and submitted that the assessee is into this business as stamp vendor for last many years. It is a normal practice to pass on the commission to the consultants as well as the stamp purchasers in order to increase the stamp sale. Regular entries in the books of accounts are made on paying the commission on various dates. Details are also maintained in a register. He further submitted that the assessee has not paid any lump sum commission to claim the tax benefit rather it has been paid on daily basis whenever the stamps are sold and the entries of paying the commission is entered. Further referring to the paper book at page 48 to 64 he submitted that affidavits have been filed from various advocates/consultants stating that the commission/discounts is received from stamp vender which is mostly passed to the customers and have also confirmed that the payment have been received by the customers. Few of th....
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.... that more than 20- 25 names and complete address of the customers are identified by the AO and his office. In this back drop of happenings the AR was surprised to receive a copy of remand report from the appellate office on 02.11.2016 without calling any of the customers since 28.10.2016. It will be in fitness of justice and fair play that the assesse be given an opportunity to rebut any new adverse material available with him which might have gathered by him behind the back of the assesse. On merits the only lapse or mistake committed by assesse or his AR is few non attendance but considering the 02 year delay and minimum 02 ITOs in the office the entire delay cannot be attributed on our head and on this ground alone this hon'ble authority is again requested to give some more time to the AO/assessee for making enquiry on the specific point mentioned in the direction dated 16.12.2014 bearing no F NO CIT(A)/ 1/ IND/ 2014-15. Now coming to the merits of the report it appears that the present respondent has simply copied some of the paras of assessment order and/ or assesse's submissions and he also has utterly failed like his predecessor ITO and the assessing author....
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....ion to any how disallow the claim." 7. Per contra Departmental Representative vehemently argued supporting the orders of both the lower authorities and submitted that the assessee failed to prove the genuineness of the alleged commission expenses and only purpose of incurring such expenses was to evade tax and therefore no relief should be granted and finding of Ld. CIT(A) should be confirmed. 8. We have heard rival contentions and perused the records placed before us. Though the assessee has raised multiple grounds running from Ground No. 1 to 7 but the sole grievance is against the finding of Ld. CIT(A)confirming the disallowance of commission expenditure of Rs. 10,10,287/- claimed by the assessee to have been paid to various customers/registry consultants purchasing the stamp papers. 9. We observe that the assessee is into this business as stamp vendor since last many years. For the year under appeal i.e. financial year 2009-10 the gross receipt from sale of non judicial stamp papers stood at Rs. 12,76,87,770/- and gross revenue from sale of judicial stamps at Rs. 46,05,000/-. Gross profit of Rs. 20,20,574/- have been disclosed and after claiming various indirect expens....