TaxTMI 
TaxTMI 
2022 (5) TMI 1372
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....0-2012 declaring total income of Rs.4,38,190/-. The case of the assessee was selected for scrutiny under CASS system. The notice u/s 143(2) of the Act was served on the assessee on 03-09- 2013. The assessment proceedings were completed by the AO by passing an order u/s 143(3) of the Income Tax Act, 1961 dated 20-03-2015, determining total income at Rs.13,28,190/-. The total income was arrived at by the AO after disallowing the brokerage paid to following three brokers amounting to Rs.8,90,000/- by considering them as in-genuine as these ladies could not make their presence in the office of the AO. 1. Smt. Giniya Devi Bansal Rs.3,00,000/- 2. Smt. Munni Devi Bansal Rs.3,00,000/- 3. Smt. Neha Bhandari Rs.2,90,000/- Total:- Rs.8,90,000/- This fact is observed from the assessment order that these ladies were not produced before the AO for examination and they had shown inability to appear before the AO on the ground of illness However, they had submitted the copy of respective ITR, bank account statement etc. medical certificate, copy of identity card etc. but the AO did not consider it appropriate and disallowed the total brokerage amount o....
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.... and ITR was accepted by the Department. 2. Copy of Bank Statement showing the amount of brokerage received by her. She could not personally attend the office of the AO due to medical reason and medical certificate to this effect was filed. 3. Munni Devi Bansal Rs.2,90,000 She through her authorized representative filed the following documents as an evidence for brokerage received. 1. Copy of Income Tax Return wherein the brokerage received was shown and ITR was accepted by the Department. 2. Copy of Bank Statement showing the amount of brokerage received by her. She could not personally attend the office of the AO due to medical reason and medical certificate to this effect was filed. The ld. AR of the assessee further submitted that during the course of assessment proceedings, the assessee had duly discharged the primary onus by providing all the details regarding the brokerage paid in the desired format and the brokers had complied with the summons of the AO. The ld. AR of the assessee further submitted that the brokerage amount of Rs....
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....NL etc. In the course of its business the assessee had appointed liaison agents to provide marketing services, for soliciting orders, ensuring timely delivery of goods, collection of payment etc., to the customers who were located across India and also render after sale services to its telecom customers. The assessee had also appointed service partners to render end-to-end annual maintenance services in respect of the telecom equipment sold to the customers. In the course of assessment proceedings the AO required the assessee to explain the business response the assessee filed a detailed note explaining its modus operandi of the business and the nature of these payments. The AO issued notices u/s 133(6) to the two commission agents as well as the three service providers, who were appointed by the assessee and the notices went uncomplied. Having regard to the fact that the notices went un-served, the AO disbelieved the genuineness of the payments made by the assessee and accordingly disallowed the commission expenditure and annual maintenance expenses of Rs.1,92,65,165/- and Rs.4,40,58,520/-respectively. Aggrieved by the assessment order, the assessee preferred an appeal before the ....
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.... in some cases or they were not found at the address furnished by the assessee does not in the least prove the fact that they were non existent or that the payments shown to have been made by the assessee were imaginary. With the advancement of technology, it has become possible to sell goods throughout the country through the internet. For that purpose, agents are required throughout the country. The mechanism in that regard has been disclosed by the assessee and has been recorded in the order of the CIT (Appeals). For the purpose of carrying on its business, the assessee has to recruit the agents. It may not be possible for the assessee to know them personally. Whatever address was furnished to the assessee, has been disclosed to the Income-tax Department. Payments were admittedly made by cheque after deduction of tax. The tax deducted as source has duly been deposited. The judgment in the case of CIT vs. Precision Finance Pvt. Ltd. reported in 208 ITR 465 relied upon by Mr.Bhowmick does not really assist him. The aforesaid judgment is an authority for the proposition that mere payment by account payee cheque cannot establish that the transaction was genuine, but in the case befo....
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....e he allowed the brokerage of the persons who appeared before the Assessing Officer and disallowed the amount paid to remaining persons).The entire amount paid towards brokerage/ commission was allowed by Hon'ble Bench. 6. Hon'ble ITAT Jaipur Bench in the case of M/s Beauty Tax vs DCIT [ITA No. 508/JP/2016)wherein it was held that when there is no finding by the assessing officer as to reason for nonappearance of the documents submitted during the course of proceedings, merely non-appearance of the suppliers in absence of any other corroborate evidence cannot be a basis to justify the stand of the Revenue that the transaction is bogus. In absence of any conclusive evidence brought on record the addition made cannot be sustained in the eye of law. 7. Hon'ble High Court of Bombey in case of CIT vsNikunj Eximp Enterprises (P.) Ltd[2013] 35 taxmann.com 384wherein it was held in the department appeal that: - The Books of Accounts of the respondent-assessee have not been rejected. Similarly, the sales have not been doubted. Further, there were confirmation letters filed by the suppliers, copies of invoices for purchases as well as copies of bank statement al....