TaxTMI 
TaxTMI 
2023 (5) TMI 469
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....ere-in-after referred to as "the Act") relevant to the Assessment Year 2012-2013. 2. The Revenue has raised the following grounds of appeal: "1. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 53,89,163/- (A.Y. 2012-13) & Rs. 42,02,457/- (A.Y. 2013-14) made on account of commission income. 2. On the facts and circumstances, the ld. CIT(A) ought to have upheld the order of the AO. 3. It is therefore prayed that the order of the Ld. CIT(A) be set aside and that of the order of the Assessing Officer be restored to the above extent. 4. The appeal is being filed as the order of CIT(A) was composite order for A.Y. 2012-13 & 2013-14 where issue was similar. Therefore, the case for....
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....of the assessee as discussed above on the reasoning that the income to it has accrued in the form of commission on gross basis which has subsequently been surrendered to the amount of Rs.53,89,163.00 by way of discounts to the customers which is nothing but the application of income. Therefore, the AO added the same to the total income of the assessee. 7. Aggrieved assessee preferred an appeal to the learned CIT-A who deleted the addition made by the AO by observing as under: "3.6 The appellant contended that his nature of business demands the payment of commission to sub agents and payment of discount to the customer who got ticket directly. The appellant further submitted that the objection of the AO that the commission has no....
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....he direct buyer. It is observed that total commission was shown in the books of account but in the Profit and loss account net commission was reflected. It is also observed that the appellant could show the relevant bills and document fled related to direct commission/discount given to the direct customer. Considering the facts mentioned above the contention of the AO is not tenable and addition made by the A.O. is deleted. The grounds of appeal are allowed." 8. Being aggrieved by the order of the learned CIT-A, the Revenue is in appeal before us. 9. The learned DR before us vehemently supported the order of the AO whereas the learned AR before us filed a paper book running from pages 1 to 122 and contended that the assessee ....
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....evenue. However, the revenue did not accept the manner of showing the gross commission income after adjusting the discount given to the customers which seems to be contrary to the stand of the revenue. It is since that the revenue accepted the commission given to the sub- agents which was not shown in the books of accounts but did not believe on the discount given to the customers despite the fact, the necessary sample invoices were furnished by the assessee having passed on discount to the customers which are available on pages 106 to 116 of the paper book. 10.3 In addition to the above, we also note that the genuineness of the discount offered by the assessee to the customers has nowhere been doubted by the AO. What has been doubted is....