TaxTMI 
TaxTMI 
2022 (7) TMI 24
X X X X Extracts X X X X
X X X X Extracts X X X X
....30.07.2018 arising out of the assessment order framed u/s 143(3) of the Act dated 15.12.2016. 2. The assessee is in appeal before the Tribunal raising the following grounds: "1. That the Appeal Order passed by Learned Commissioner of Income Tax (Appeals) - 10 / Kol is unlawful, unwarranted and against natural justice. 2.That the disallowance of Commission Paid amounting to Rs.44,25,705/- for business purpose be directed to be allowed. [Relief claimed - Deletion of Rs.44,25,705/-]. 3. That the disallowance of Interest Paid amounting to Rs.6,56,140/- and addition for Bogus Loan Creditors amounting to Rs. 18,50,000/- is against Law and natural justice and hence prayed to be deleted. [Relief Claimed - Deletion of R....
X X X X Extracts X X X X
X X X X Extracts X X X X
....021 containing documents for supporting the genuineness of commission expenditure. The crux of the arguments made by ld. Counsel for the assessee are that as far as the commission expenditure is concerned, they have been consistently claimed by the assessee and details of all the commission agents including PAN, confirmations have been filed and they all are genuine expenditures incurred in the regular course of business. As regards the addition u/s 68 of the Act it is contended that in the past also the assessee has taken loan from these companies and they were not found to be ingenuine by the Revenue authorities and the interest disallowance is also uncalled for as it is mostly paid on the opening balances of loans brought forward from pr....
X X X X Extracts X X X X
X X X X Extracts X X X X
....res and the consistency of claiming such commission expenditure, we are of the considered view that disallowance of commission expenditure was not called for as the assessee has furnished sufficient documentary evidences to prove the genuineness of the said claim of commission expenditure incurred by the assessee for business purposes for selling its goods. Thus, ground no. 2 raised by the assessee is allowed. 9. Now coming to ground no. 3 which includes the disallowance of interest expenditure at Rs. 6,56,140/- and bogus loan creditors at Rs. 18,50,000/-, we first take up the issue of unexplained cash credit of Rs. 18,50,000/- which consists of the following: a) Sourav Shipping India Pvt. Ltd. Rs. 10,00,000/- b) M/s. D....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e is Rs. 7,07,658/- and that of Gunius Wax & Chemicals Pvt. Ltd. is Rs. 1,63,090/-. No adverse material is found by the Revenue authorities and the addition has been made solely for the reason that these two parties did not reply to the notice u/s 133(6) of the Act but no further enquiry was conducted by the Revenue authorities. Complete details of the address, PAN No. and other financial documents stood filed before the Revenue authorities. The genuineness of the opening balance of the loan has not been doubted by the ld. AO. Under this given facts and circumstances we fail to find any merit in the action of the ld. AO making addition for unexplained cash credit received from M/s. Dharmaraj Trading Co. at Rs. 1,00,000/- and from Gunius Wax....