TaxTMI 
TaxTMI 
2022 (11) TMI 478
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.... account of commission and brokerage paid without appreciating the fact that the transactions have been carried out through banking channels does not mean that the transactions proved its genuineness and more so when notices u/s. 133(6) and reminders were not responded by concerned payees. 3. On the facts and in the circumstances of the case, the Commissioner of Income tax (A)-4, Pune, has erred in deleting the addition of Rs.1,68,33,800/- on account of commission and brokerage paid without appreciating the fact that rendition of service is not established which is essential for allowing deduction on account of commission and brokerage. 4. On the facts and in the circumstances of the case, the Id. Commissioner f Income tax (A)-4, Pune, has erred in deleting the addition of Rs.1,68,.33,800/- on account of commission and brokerage paid ignoring the settled position of law that disallowance of commission payment is warranted where genuineness of services rendered is not established (Premier Breweries Ltd V. CIT 56 Taxmann.com 351- Supreme Court; Lachminarayan Mandanlal 86 ITR 439 - Supreme Court; Printer House (P) Ltd V. DC IT 88 Taxmann.com 45-Delhi). 5. Fo....
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....nt order. The assessee contended before the AO that the required information was submitted from time to time including list of the persons and address to whom payments were made. Apart from this, the assessee had to develop a number of facilities, such as approach roads, storage facilities, temporary accommodations etc. at the project side. The assessee therefore had obtained the rights of usage of the land from the persons mentioned in the list. The assessee also had paid crop compensation to the persons for the loss of their crops standing on such land purchased and also consideration for the services rendered by these persons. The AO submitted that various details such as names of the persons, postal addresses, dates of payments, amounts paid, mode of payments and cheque nos. were also furnished before the AO. The assessee also furnished confirmation letters of the persons to whom verification letters were issue by the AO. The assessee also furnished copies of identity proves of the persons before the AO. It was contended that the accounts of the assessee for this year were audited and the amounts paid as brokerage and commission were independently verified by the auditor during....
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....erprises Vs. ACIT, Circle-2, Surat (ITAT)(Ahmedabad); It is held by Hon. ITAT (Ahmedabad) that if allegation is made by AO, onus is on him to prove it conclusively, the appellant contended that the AO had failed to do so. The appellant also submitted that the expenditure was genuine, reasonable & for the purpose of business. Referring to the decision of the Hon. ITAT G Bench Mumbai in Shri Ganpatraj A. Sanghvi Vs. A.C.LT. 15(3), the appellant contended that the addition deserved to be deleted as the same could not be made on the basis of preponderance of probabilities. Suspicion could not form the basis of addition, as was held in the said decision. The appellant also cited the decision in the case of Rajesh P. Soni Vs. A.C.I.T. 100 TTJ 892 (Ahmedabad), Annexure - 14, wherein the Hon. ITAT Ahmedabad inter-alia held that purchases were recorded in the regular books of account maintained. The purchases were supported by proper bills I vouchers. The assessee filed the necessary details regarding name, address, sales-tax numbers. The payments were made through banking channels and therefore the sales against the purchases could not be doubted. It was not the case of AO that amounts pai....
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....ist of the persons, details as stated above , dates of payments, amounts paid by cheques etc and therefore, genuineness of payments were proved. The appellant also detailed the reasons for making such payments to the concerned persons contending that the same was required for determination of Gat numbers as well as the owners of the lands required for the project; co-ordination between the land owners and the assessee in respect of the proposed deals; clearing off the various constraints and hurdles arising in this regard; cleaning of proposed area and other works till the completion of the assigned works. I find that the AP restrained himself to his enquiry only to calling for information u/s. 133(6) of the Act, that too only 9 persons out of 74 persons. When the persons did not comply to AO's notices, the AO could have deputed his Inspector for verification and spot enquired so as to ensure the non-genuine nature of transactions, if any. Further, when the AO had all required documents for the identity of the persons, he could issue summons u/s.131 of the Act to some of such persons. The AO could also try to trail the source and outgo of the amounts by making detailed bank enq....