2023 (1) TMI 892

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....ng out of assessment order dated 30/12/2016 u/s 143(3) of the Income Tax Act, 1961 passed by ACIT, Circle-34(1), New Delhi (hereinafter referred to as the Assessing Officer or 'AO'). 2. Assessee filed return of income declaring total income of Rs. 17,03,630/-. Subsequently, the case was selected for scrutiny and Ld. AO had disallowed commission expenses paid to 8 parties to the extent of Rs. 33,81,600/-. The background to it being that in the relevant financial year, assessee paid commission to parties in regard to sale transaction totaling Rs. 1,04,80,630/- and deducted tax at source. The Ld. AO issued notices to 12 parties u/s 133(6) to confirm the commission payment. Confirmation of four was received therefore, addition in regard to 8....

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....(A) erred in law as well as on facts by dismissing the ground for not charging interest u/s 234B of the Income Tax Act. 1961 without considering the merits of the case. 7. That the Ld. Assessing Officer erred in law and fact as well by initiating penalty proceedings u/s 271(1 )(c) of the Income Tax Act. 1961. 8. That the appellant reserves the right to add, modify, alter, amend or delete any of the grounds." 3. Further the Ld. CIT(A) initiated penalty proceedings u/s 271(1)(c) of the Act for inaccurate claim of deduction for commission expenses to the tune of Rs. 70,99,030/- and imposed penalty of Rs. 21,93,600/-. 3.1 The assessee is in appeal vide ITA No. 7059.Del.2019 raising following grounds :- "1. On th....