2024 (2) TMI 630

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.... 2014-15. 2. The assessee has taken six grounds of appeal in A.Y. 201314 and nine grounds of appeal in A.Y. 2014-15. These grounds are not in consonance of Rule 8 of Income Tax Appellate Tribunal Rules. They are descriptive in nature. In brief, the grievance of the assessee is that the ld. CIT(Appeals) has erred in confirming the disallowance of commission payment at Rs. 22,83,800/- and Rs. 19,22,641/- in A.Ys. 2013-14 and 2014-15 respectively by way of an ex-parte order. 3. Brief facts of the case are that the assessee has filed its return of income declaring total income of Rs. 2892,160/- and Rs. 48,71,610/- on 01.10.2013 and 27.11.2014 in A.Y. 2013-14 and 2014-15 respectively. The case of the assessee was selected for scrutiny asse....

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....eld to be adequate in the presence of overwhelming surrounding attendant facts and circumstances of this case. The afore mentioned transactions were found to be not genuine. Reliance is placed on the decision of Hon'ble jurisdictional Kolkata tribunal in the case of M/s Patangi Trade & Holdings Pvt Ltd in ITA Nos 1533 to 1537/kol/2012 amd M/s Bisakha Sales Pvt Ltd vs CIT in ITA No. 1493/Kol/2013. Para 7.21 of the order in the case of M/s Bisakha Sales Pvt Ltd ( supra ) is re-produced below : "Merely dumping papers and documents on the table of the assessing authority does not in any way mean compliance. The burden of proof cannot be shifted on the revenue by cart loads of documents. The documents submitted must be explained". ....

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.... are allotted on the basis of applications without actual de facto verification of the identity or ascertainment of the active nature of business activity. PAN Number is allotted as facility to revenue to keep track of transactions. The PAN Number cannot be blindly and without consideration of surrounding circumstances treated as sufficiently disclosing of identity of individual". 3.4. The commission with regard to the transactions in question are found to be not satisfactorily proved by the assessee company. Considering the facts and circumstances of this case and the aforementioned judicial pronouncements, I hereby disallow the payments of commission of Rs.22,83,800/-. Subject to the above discussion, the total income of....

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.... perusal of these details would indicate that the assessee had made most of the payments through RTGS or Account Payee Cheque. It has given the details of those recipients including copies of their income tax returns. Reverting back to the alleged enquiry by the ld. Assessing Officer. He issued notice under section 143(2) on 04.09.2014. Thereafter he issued a questionnaire on 23.11.2015, i.e. the proceeding remains dormant more than one year. He started the inquiry in November, 2015 and passed the assessment order on 08.03.2016. According to him, he has issued notice under section 133(6), which was returned back. Thereafter he has issued summons under section 131 dated 04.02.2016 directing those individuals to appear before him on 11.02.201....