2023 (4) TMI 533

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....13 was filed on 05.02.2013 declaring total income of Rs.5,23,249/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-2(2), Nashik ('the Assessing Officer') vide order dated 24.02.2015 passed u/s 143(3) of the Income Tax Act, 1961 ('the Act') at a total income of Rs.19,52,419/- after making disallowance of commission expenditure of Rs.14,29,170/- for non-deduction of tax at source. The brief facts of the case are as under :- The Tax Auditor in his report had reported that the appellant had not deducted TDS on the commission expenditure of Rs.14,29,170/-. Based on this information, the Assessing Officer had called upon the appellant to explain as to why the provisions of section 40(a)(ia) of t....

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....t had only received the net sale proceeds from the buyers of the onions and he had not received the entire gross receipts. The appellant had debited commission expenditure to the Profit & Loss Account and the gross sale proceeds were credited to Profit & Loss Account, but the appellant had received only net of the commission expenditure. Thus, he submits that there is neither credit to the parties' account on account of commission expenditure nor actual payment by the appellant. Therefore, the question of deduction of TDS in terms of provisions of section 194H of the Act does not arise. In support of this proposition, he also placed reliance on the decision of the Hon'ble Bombay High Court in the case of CIT vs. Super Religare Laboratories ....