2020 (1) TMI 829

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....or the Opponent(s) No. 1   ORAL ORDER (PER : MR.J.B.PARDIWALA) 1. This tax appeal under Section 260A of the Income Tax Act, 1961 [for short 'the Act, 1961'] is at the instance of the revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench 'D', Ahmedabad dated 25/06/2019 in the ITA No.2945/AHD/2015 for the A.Y 2008-09. ....

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....to provide details of potential customers as well as solicit the orders. Such commission agents are also required to provide any other information, report or statement of account of the customers as desired by the appellant from time to time. However, no formal agreement has been reduced into writing to this effect. I am of the view that merely not entering into such a formal agreement cannot be a....

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....agents, it was open for the Assessing Officer to call for such details from such commission agents u/s.133(6) or issue summons to such agents as well. However, nothing of that sort has been done by the Assessing Officer. Hence, addition cannot be made even on that score. However, on perusal of documentary evidences furnished by the appellant, it transpires that the only service rendered by the com....

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....bove. We thus delete the addition. In the result, assessee's appeal is allowed."   5. The appellate tribunal took the view that the CIT (Appeals) ought not to have confirmed the disallowance only on the ground that the only service rendered by the commission agents was that of introducing the potential customers to the assessee, which would not fall within the ambit of "Service" so as ....