TaxTMI 
TaxTMI 
2019 (5) TMI 688
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....by ACIT,2(1) Indore. 2. Brief facts of the case as culled out from the records are that the assessee is a Private Limited Co. engaged in Manufacturing & Trading of Absorbent Cotton & Gauge and Trading in Medicines. Income of Rs. 1698170/- declared in the e-return of income filed on 30.09.2009 for A.Y. 2009-10. Case selected for scrutiny through Computer Assisted Scrutiny Selection (CASS). Notices u/s 143(2) & 142(1) of the Act were duly served upon the assessee. Financial statement and books of accounts were examined. Learned Assessing Officer (in short Ld. AO) called for information relating to claim of expenses including commission expenses of Rs. 48,19,026/-. Details were filed by the assessee. Ld. AO completed the assessment af....
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....R vehemently argued supporting the order of both the lower authorities. 8. We have heard the rival contentions and perused the record placed before us and gone through the details filed in the paper book submitted by the assessee. 9. Ground No.1: "Disallowance made at Rs. 2,89,786/- by treating the same as related to earlier years, whereas the same are allowable during the year in question and hence, it is prayed that the amount may kindly be directed to be allowed as claimed. 10. As Ld. counsel for the assessee has requested for not pressing this ground, therefore, ground No.1 is dismissed as not pressed. 11. Ground no.2. ii. Disallowance made at Rs. 74,098/- on account of notional interest disallowed on advan....
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.... as under: iii. Disallowance made at Rs. 14,45,707/- out of total disallowance made by the Ld. Assessing officer at Rs. 36,73,850/- being the amount of commission paid, whereas the said commission is paid for the purpose of business of the petitioner and allowable and hence, it is prayed that the disallowance so maintained at Rs. 14,45,707/- may kindly be directed to be allowed. 16. Perusal of records show that commission expenses of Rs. 48,19,026/- was paid to 16 parties during the year. Turnover of the assessee increased to Rs. 6,73,60,694/- in comparison to the turnover of immediately preceding financial year at Rs. 3,02,59,687/-, which means that the turnover has almost doubled whereas the commission expenditure which was at....
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....igh Court) 298 ITR 203, and Microtax Separators Ltd. (Kar.) 209 CTR 62. 8.1. Now we discuss specific cases of commission agents and those three categories in which AO has divided all 16 commission agents. Various shortcomings which need mentioned are that when AO wrote enquiry letters to many of these commission gents, no reply was received from Fairdeal Enterprise and Javed Khan. Details of educational qualification and competence to conduct such business was not given. None of the agents was produced before AO, despite being specifically asked. The reason for giving commission to a finance company namely M/s Ascent leasing and Finance Co. ltd. was not explained. Appellant could not even provide address of one of the comm....
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....the end of justice. As a result out of commission disallowance made by AO of Rs. 36,73,850/-, as disallowance of Rs. 14,45,707/- is confirmed and appellant gets a relief of Rs. 22,28,142/-. As a result this ground of appeal is partly allowed. 18. On perusal of the above finding of Ld. CIT(A) as well as in the given facts and circumstances of the case and documentary evidences places on record, we observe that as regards the disallowance of commission @ 50% of Rs. 24,92,372/- made by the Ld. AO there is no specific finding by Ld. AO about questioning the genuineness of the expenditure and as Ld. AO has himself allowed 50% of the commission expenses. Identity proof and details including confirmation and income tax return submitted. Ld. AO ....