2009 (8) TMI 10

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....ises and the appeal is therefore, liable to be dismissed. 2. The only issue in this case pertains to the claim of the assessee of expenditure incurred by it for payment of commission to taxi drivers, guides and other commission agents. The assessee carries on the business of departmental stores in which various handicrafts items, carpets etc. are sold to tourists. For the Assessment Year in question i.e. 2005-2006, the assessee claimed expenditure towards commission paid to the taxi drivers, guides and other commission agent to the tune of Rs.11,45,47,937/-. The Assessing Officer allowed Rs.1,21,55,213/- as expenditure out of the aforesaid amount claimed by the assessee. The assessee declared a total income of only 1.43 crores on a turno....

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....A) noticed that the assessee had shown different number of persons, with reference to each sale, for example, in respect to one sale made on 1.10.2004 (sale value Rs.1,50,891/-) the assessee claimed to have paid commission to 26 person and in each case the amount is less than Rs.2500/-. Similarly, on a single sale worth Rs.3,37,500/- the assessee claimed to have made payments to 35 persons wherein the commission is shown at less than Rs.2500/- i.e. Rs.2,458/- per head. It was further noticed from the details that the name of a person is not repeated in a month and that was an improbability taking the human probability into consideration that any commission agent such as a taxi driver or a guide when he is benefited by commission he would no....

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....e total turnover as against 14% fixed by the learned CIT(A). 3. Therefore, the very limited dispute is whether the commission amount payable which is allowed as expenditure should be 16% as held by the I.T.A.T or 18-20% or so, as claimed by the assessee, the ITAT having in any case increased the expenditure to 16%, from 14% as allowed by the CIT(A). 4. In view of the insufficiency in the probative value and probability value of the expenditure incurred on account of facts detailed above, the factual findings have been arrived at by the I.T.A.T. The counsel for the appellant has strenuously urged that either the entire commission should have been allowed or the books of accounts should have been rejected. We do not think this contentio....