2019 (6) TMI 836

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.... appeal however the cruxes of the issue are that (i) The Ld.CIT(A) has erred in confirming the order of the Ld.AO who had made partial disallowance of commission paid amounting to Rs. 7,20,110/- invoking the provisions of Section 40A(2)(b) of the Act. (ii) The Ld.CIT(A) has erred in confirming the order of the Ld.AO who made disallowance of Rs. 1,89,429/- U/s.40(a)(ia) of the Act towards non-deduction of TDS on interest payments. (iii) The Ld.CIT(A) has erred in confirming the order of the Ld.AO who had made addition of Rs. 1,60,124/- as unexplained expenditure U/s.69C of the Act. 3. The brief facts of the case are that the assessee is a partnership firm engaged in retail trade of iron and steel, filed its return of income for the as....

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....take extraordinary promotional activities due to which the assessee could achieve high turnover. It was further submitted that the assessee's related parties has included the commission received from the assessee as its income and paid tax. Hence it was pleaded that the addition made by the Ld.AO which was further confirmed by the Ld.CIT(A) may be deleted. The Ld.DR on the other hand relied on the orders of the Ld.Revenue Authorities and pleaded for confirming the same. 4.2 After hearing both sides, we do not find much merit in the submission of the Ld.AO. The assessee had paid commission to unrelated parties @ of 0.625% on turnover and at the same instance the assessee has paid commission to its related parties at the rate of 2.03% on the....