TaxTMI 
TaxTMI 
2022 (1) TMI 587
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....come Tax (Appeal) erred in confirming the addition of Rs. 6,50,000/- on account of commission income. 3. The Learned Commissioner of Income Tax (Appeal) failed to appreciate that the addition made by the learned assessing officer is illegal and bad in law 3. Brief facts of the case are that in this case in assessment order AO made two disallowances on related to commission of income of Rs. 6,50,000/- not reflected in assessees P&L account another was disallowance 10% of the expenses amounting to Rs. 69,250. Ld. CIT(A) has dealt with this issues as under:- Ground No. 1 of the appeal against the addition made on account of commission of Rs. 6,50,000/- received by appellant. In the written submission dated 07.09.2020, the ....
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.... findings. Ground No. 1 of the appeal made on account of commission of Rs. 650000/- received by the In written submission dated 07.09.2020, the appellant has accepted that failed to show the commission income of Rs. 650000/- in the return of income. In of the admission and the facts of the case, the addition made by the is confirmed and of appeal is "dismissed". In this connection the appellant submit that the learned AO did not consider the submissions made vide letter dated 21/11/2016 explaining that the commission received from the Fine Organics Industries Private Limited, Rs. 650000/- (TDS deducted under section 194H Rs. 65000/-) was reduced from the purchases hence correctly offered the said commission income to the t....
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.... since the commission income Rs. 650000/- was receivable, Rs. 585000/- (Rs. 650000- Rs. 65000/- TDS) was shown under the head loans and advances as per Schedule 8 of Balance Sheet as on 31.03.2014 (Refer Page No. 3 of paper book). It is further to be noted that amount was received by the Appellant in subsequent year by account year by account payee cheque (refer page No. 43 to 44 of paper Book). Learned AO did not considered submissions fully and arrived at the conclusion that "If nature of receipt is discount receivable, TDS would not have been deducted, the sum of Rs. 650000/- is added to the total income of the assessee as commission Income not offered to tax. (Emphasis supplied) the learned AO completely disre....
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....ooked accordingly. Sir, during the financial above companies had supplied goods directly to the parties of the appellant In turn the company issued credit not for the commission but, the accountant by oversight credited the purchase account treating the same as discount and thus reduced the purchases by Rs. 650000/- instead of showing the same as commission income. (Purchase ledger and copy of Audited accounts attached at sr no. 14 to 22 of paper book.) 2.3 Sir. your honours will appreciate that there is no revenue loss nor there was of the appellant to avoid tax on the same, as the impact on net profit is Nil as to that extent is shown less. Considering the above facts it is prayed to your honour take as lenient view a th....
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....raised two grounds before the Ld. CIT(A) and has made following submissions:- "Your honour will appreciate that the appellant regularly purchase goods from M/s. Fine organics Industries Pvt. Ltd. and fine specialty surfactants Pvt. Ltd. Sir, this two companies grant turnover discount to the appellant every 3 months and it is the policy of the appellant to reduce the said discount from purchases Account. The credit notes are issued by the company very late and hence they are booked accordingly. Sir, during the financial year the above companies has supplied goods directly to the parties of the appellant in-turn the company issued credit note for the commission but, the accountant by oversight credited the purchase account treating t....