TaxTMI 
TaxTMI 
2022 (3) TMI 428
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....ssee was selected for scrutiny under CASS. During assessment proceedings the Assessing Officer issued questionnaire alongwith the notice u/s. 142(1) of the Act dated 19/09/2018. A specific query was raised by the Assessing Officer regarding the details of commission paid. In response to said notice the assessee furnished reply giving the details as sought including the details of the commission paid. Thus, the Assessing Officer examined the entire issue with regard to the payment of commission and thereafter, having satisfied with the documents and explanation submitted accepted payment of commission and passed the assessment order for the impugned assessment year 2016-17. Thereafter, the PCIT invoked revisional powers u/s. 263 of the Act o....
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.... under appeal are identical to the facts in Assessment Year 2012-13 and Assessment Year 2015-16. The nature of transactions are identical and the associate concern to whom commission is paid is the same. The ld. Authorized Representative for the assessee asserted that the PCIT has erred in coming to the conclusion that the Assessing Officer has failed to examine the issue and has passed the impugned assessment order without making enquiries and hence, the assessment order is erroneous and prejudicial to the interest of Revenue. 3. Per contra, Shri Mahesh Akhade representing the Department vehemently supported the order passed by the PCIT u/s. 263 of the Act. The ld. Departmental Representative submitted that the Assessing Officer merely co....
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....tails furnished by the assessee including the details of the commission paid passed the assessment order. Though in the assessment order dated 12/12/2018 there is no discussion about the payment of commission or the enquiries made regarding payment of commission, but, that does not mean that the Assessing Officer has not applied his mind on documents submitted by the assessee. The Assessing Officer after having examined the documents was since, satisfied regarding assessee's claim of payment of commission, hence, accepted the same. It would be relevant to mention here that in Assessment Year 2012-13 similar disallowance in respect of payment of commission to M/s. Toshbro Controls Pvt. Ltd. was made by the Assessing Officer. The assessee....
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....sessee company M/s. Nova Controls Pvt. Ltd. which is the flag ship company. 6. We further find from the details that similar commission has been paid to M/s. Toshbro Controls Pvt. Ltd., during the Financial Years 2007-08 to 2014-15 and the percentage of total sales made through the M/s. Toshbro Controls Pvt. Ltd. by the assessee ranges from 58.30% to 78.78% and the commission paid ranges between 11.57% and 18.83% depending upon the percentage of sales to total sales. We find that the Revenue has accepted the payment of commission in all the earlier years and disallowance was made only during this year and based on an apprehension that the sister concern is making loss and therefore assessee tried to shift the profits, this fact is not pro....