2021 (5) TMI 764

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....n respect to the addition of commission of Rs. 6,06,720/-. 2. The learned C.I.T. ( A ) erred in ignoring the trade practice of giving commission on purchases since in tobacco business the correct quality of purchase is more important than negotiating the profitable sale transaction. 3. The learned C.I.T. ( A ) erred in working out the rate of commission and comparing the same with the G.P.Ratio and thereby ignoring the working given before him of the effective benefit Rs. 15.03 per K.G. earned by the assessee by reduction in cost of purchase out of which Rs. 6.90 per K.G. were given as purchase. 4. The learned C.I.T. ( A ) erred in ignoring the fact that the commission amount is paid by cheque, TDS has been made a....

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.... name of Sagar Baldawa 6,06,720 4) Addition on a/c of disallowance of excessive & Unreasonable salary u/s.40A(2)(b) 30,66,000 5) Addition on a/c of disallowance of expenses 1,57,860 4. The Assessing Officer also initiated penalty proceedings u/s 271(1)(c) of the Act for furnishing of inaccurate particulars of income. 5. Being aggrieved by the above additions, an appeal was preferred before the ld. CIT(A), who vide order dated 19.03.2014 had partly allowed the appeal. While doing so, the ld. CIT(A) deleted the addition made on account of understatement of stock and suppression of gross profit of Rs. 76,95,866/- and also addition on account of unrecorded purchases and sales of Rs. 19,52,000/-. The ld. CIT(A), howeve....

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....culars of income by rejecting the explanation of the assessee. 7. On appeal before the ld. CIT(A), the ld. CIT(A) deleted the penalty levied with reference to the disallowance on account of salary u/s 40A(2)(b) of the Act. However, he confirmed the penalty with reference to the addition on account of alleged bogus commission. 8. Being aggrieved by the above decision of the ld. CIT(A), the assessee is in appeal before us. 9. When the appeal was called on, none appeared on behalf of the assessee despite due service of notice. 10. We heard the ld. Sr. DR who placed reliance on the orders of the lower authorities. From the perusal of the assessment order, it is clear that the Assessing Officer had disallowed the commission of Rs. 6,....