2008 (2) TMI 306

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....delivered by SATISH KUMAR MITTAL, J . - The instant appeal filed by the revenue is directed against the order dated 22.12.2006 passed by the Income Tax Appellate Tribunal, Delhi Bench "D" New Delhi (hereinafter referred to as `the ITAT') in ITA No.2011/DEL/03 in case of the respondent for the Assessment Year 1997-98 by raising the following substantial question of law:- "Whether, on the fact....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ee, the Commissioner of Income Tax (Appeals) confirmed the said addition. On further appeal filed by the assessee, the ITAT deleted the said addition while observing as under:- "We have heard the parties and perused the record of the case. The assessee claimed to have paid comm @ 10% of Rs.10,38,860/- on sale of machinery to K.C. Cement Ltd. and Rs.1,29,600/- on sale of plant to Mr. Kanshi Ram ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t credited in their accounts at page 152 and 159 of paper book. The necessary correspondence entered into between the assessee and these parties regarding procurement of orders are also placed on record (page 152 to 162/PB). There is even MOU dated 25.4.96 signed with one of the parties (M/s. K.C. Cement Ltd.) for procurement of order which is available at page 161/PB. The name of the parties and ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ord which clearly prove that the amount of commission/service expenses was actually paid by the assessee to those parties. The ITAT on the basis of the said evidence has recorded a pure finding of fact while coming to the conclusion that the assessee has clearly proved the payment of the aforesaid two amounts to the above-said parties. In our opinion, when the assessee has proved the actual paymen....