2024 (5) TMI 99

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....nder: ITA No.5502/Del/2017 "1. Whether in the facts and circumstances of the case, the Ld. CIT(A) has erred in allowing the appeal of the assessee by deleting disallowance of commission expenses amounting to Rs. 2,51,21,886/- paid to M/s Synergy Petro Products Pvt. Ltd when there is no role of any agent as the contract was secured by the open tender process? 2. Whether in the facts and has erred in allowing the appeal of the circumstances of the case, the Ld. CIT(A) assessee by deleting disallowance of commission expenses amounting to Rs. 2,21,14,782/- paid to Non-resident viz. M/s Blesba Trade & M/s Societe Amar Consulting when the agents were also providing the assessee allied services and their services were in....

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....wance of interest amounting to Rs. 1,75,26,970/- when the AO has clearly established that the assessee has diverted its interest bearing funds to its sister concern for non-business purposes? 4 The appellant craves leave to add, alter or amend any grounds of appeal before or during the course of appellate proceedings before the Hon'ble ITAT." 2. These two appeals are interconnected having common issues. Both these appeals are heard together and disposed off by this common order. We are taking ITA No.5502/Del/2027 as a lead case. 3. The case was called for hearing, but none was appeared on behalf of the assessee, even though, RPAD notice was issued to the assessee for the intimation of hearing and acknowledgment also recei....

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....expenses vide letter dated 02/12/2013 and submitted the details of commission paid to the parties under consideration which were 8% to 15% range. 5. After considering the above submissions, the Assessing Officer asked the assessee to furnish necessary evidences of service provided by the commission agents. However, the assessee could not furnish any document or evidences of providing of services by any of the above said commission agents. In order to verify, the Assessing Officer issued summons u/s 131 of the Act to M/s Synergy Petro Products Pvt. Ltd., New Delhi. In this regard, the Assessing Officer was provided with an agreement in connection with the transactions with M/s Synergy Petro Products Pvt. Ltd. and subsequently, statement o....

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....wance of car running & maintenance expenses; (f) Addition of Rs. 1,52,992/ on account of disallowance of telephone expenses. 8. Aggrieved with the above order, the assessee preferred an appeal before the Ld. CIT(A) and filed detailed submissions along with additional evidences. The Ld. CIT(A) allowed the grounds raised by the assessee by relying on the letter of credit issued by M/s Synergy Petro Products Pvt. Ltd. and against the supply and installation of agricultural equipments, the assessee has received 95% of the payment and further, he observed that M/s Synergy Petro Products Pvt. Ltd. are not related to the assessee. 9. With regard to other commission paid to other parties, Ld. CIT(A) has relied on additional evidences....