TaxTMI 
TaxTMI 
2023 (8) TMI 381
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.... National Faceless Appeal Centre, Delhi (NFAC), for the AYs 2015-16 & 2016-17 respectively. 2. The common issue involved for both the years in these appeals are disallowance of commission expenses as not genuine and non-deduction of tax at source u/s. 194H of the Act. For AY 2015-16 the issue is disallowance of commission expenses of Rs. 99,34,400 in kind by transfer of shares of Cipla Ltd. These appeals were heard together and disposed of by this common order. 3. The brief facts of the case are that assessee is an individual engaged in share trading and related business. For the AY 2015-16 the assessee filed return of income on 05.11.2015 declaring total income from business including trading in share (speculative as well as delivery....
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....es on the basis of an agreement dated 29- 04-2014 with certain parties for the above services. It is noticed that the clients have agreed to transfer 3,60,000 shares in Cipla Ltd to the assessee as per agreement and accordingly the assessee obtained commission in the form of shares from the above party. 5. Apart from the business of tracing as above, the assessee has also received certain commission for rendering services mentioned above. The assessee is also trading in F&O Derivatives in which a gross loss of Rs. 50,42,606/- has been declared. The assessee also trades in shares (delivery based) and the profit has been declared in respect of shares obtained by purchase as well tracing activity mentioned above and the gross sales de....
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.... the basis of closing stock valuation by the assessee @ Rs. 710/- per share 6. Further, the AO issued certain enquiry letters with regard to tracing business to the parties for verification and noted that none of the parties replied and some enquiry letters were returned unserved by the postal department. In the absence of evidence of nexus of commission with the income earning activity for not deduction tax at source u/s. 194H of the Act, the AO made disallowance of Rs. 1,55,78,270 (56,44,270 + 99,34,000). 7. On appeal, the ld. CIT(Appeals) confirmed the order of the AO on the above disallowances. Aggrieved, the assessee is in appeal before the Tribunal. 8. The assessee has filed additional evidence at pages 107 to 132 as follows:....
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....noted that no return was filed by the assessee for AY 2014-15, which was subsequently filed belatedly. The AO issued enquiry letters to the parties concerned but received no response. We note from the assessment order that the AO has obtained information from the data about the business activities of the assessee from FY 2012-13 to FY 2015-16. The revenue authorities have disallowed the same since the assessee failed to establish that it was genuine expenditure and it is also held that the assessee failed to comply with the TDS provisions u/s. 194H. The assessee has got the books of accounts audited u/s. 44AB in this year for the first time. The ld. AR stated that the turnover of the assessee was below the taxable limit and therefore sectio....