TaxTMI 
TaxTMI 
2023 (4) TMI 996
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....der the facts and circumstances of the case. 3 For that the Learned Commissioner of income Tax (Appeals) has erred in confirming the addition made for proportionate Interest out of the Interest paid under the facts and circumstances of the case as a correct Computation 4 For that the Learned commissioner of Income Tax (Appeals) has erred in confirming the addition made out of the Commission paid for want of Deduction of Tax under the facts and circumstances of the case 5. For that the Learned commissioner of Income Tax (Appeals) has erred in confirming the addition made out of the Commission paid under the facts and circumstances of the case 6. For that the Learned commissioner of Income Tax (Appeals) has erred in confirming the addition made out of the Sales promotion Expenses under the facts and circumstances of the case 7. For that the Learned Commissioner of Income Tax (Appeals) has erred in confirming the addition made out of the Sales promotion Expenses under the facts and circumstances of the case 8 for that the Learned commissioner of Income Tax (Appeals) has erred in confirming the addition for service Tax under the facts and circumstances of the case 9 For t....
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....ven loans and advance at lower rate which calls for disallowance of interest payment. As regards commission payment, ld. AO noticed that commission has been paid to the partner without deduction of tax at source and in case of commission paid to some other persons no details were available. Further, ld. AO noticed that the assessee has claimed sale promotion expenditure of Rs. 75,73,160/-, which were incurred towards giving gold coins/articles to the distributors, but the bills produced were for purchase of gold jewellery, and the reply called from the various vendors was also not found to be satisfactory. Other than this, ld. AO also examined travelling expenses and the claim of service tax penalty and made various disallowance computing the income of the assessee in the following manner: Business: Total Income as per assessee computation 23372772 Add: As discussed above Proportionate interest payment on borrowed fund 1685987 Out of commission payment 575000 Out of sale promotion 7573160 Service Tax Penalty 20702 Out of travelling expenses 2439039 12296888 Assessed Total income ....
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....reated as personal expenses. Finally, once again request was made that in case the assessee is unable to get any relief on the legal issue, then opportunity may be given to go back to the ld. CIT(A) or the ld. AO for the necessary adjudication of the issue on merits, since, fair opportunity was not provided by the lower authorities. 9. On the other hand ld. DR firstly stated that the assessee's legal grounds deserves to be dismissed since the jurisdiction was transferred from ld. ACIT to ld. JCIT vide order dated 26.08.2013 and therefore, notice u/s. 143(2) of the Act as well as the completion of assessment proceedings both have been carried out by the Assessing Officer having jurisdiction for the assessee. So far as merits of the case are concerned, ld. CIT-DR vehemently argued relying strongly on the findings of both the lower authorities and further stated that the claim of sale promotion expenditure should not be allowed since the bills provided by the assessee towards sale promotion expenses are for purchase of gold and diamond jewellery which prima facie looks to be the purchase made for the family members of the assessee's firm partners and expenditure have been claimed in ....
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....ry details of the preceding years and subsequent year has to be filed by the assessee, in support of its claim of interest income on the advance given. 12. We also notice that the commission payment of Rs. 5,75,000/- has been disallowed, which includes the payment to the partners Sri Narendra Sri Srimal of Rs. 4,50,000/- and the same has been disallowed for non-deduction of tax at source u/s. 40(a)(ia) of the Act. It is submitted by the assessee that tax was not required to be deducted for the payment made to the partners and even otherwise the partners has duly disclosed the commission income in their return of income and paid due taxes for which necessary verification can be carried out. As regards commission expenditure of Rs. 1,25,000/- given to Ms. Anusya Jain, the assessee failed to furnish any details to explain the genuineness of the commission expenditure. Except providing name and address of the commission agent, no other details has been provided. However, it is seen that address has been provided, then the ld. AO could have enquired directly from Ms. Anusya Jain about the alleged commission payment, the nature of service provided by her and whether the same has been of....