TaxTMI 
TaxTMI 
2025 (4) TMI 1430
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....jection was examined and was rejected by AO on due consideration of facts. 4) Where full and true disclosure of facts was made. 5) Where reasons were not recorded, sanction was not obtained u/s 151 and objections were not disposed or in the alternative were inadequately dealt with in violation of law. 6) Where the assessment re-opened was substituted by three further orders passed subsequent to the assessment. 7) Where proceedings were conducted without valid jurisdictions. 8) Where the previous orders were subjected to appeal. 9) Where notice was served after 31.03.2017 10) Where income was brought to tax in subsequent year. 11) Where there was uniform rate of taxation. GROUND NO 2: DISALLOWANCE OF COMMISSION EXPENSE OF Rs. The learned CIT(A) erred in law and facts in disallowing the payment of commission of Rs. 4,88,53,351/-, made in the course of business, wholly and exclusively incurred for the purposes of business, the liability for which had accrued, arisen and the payment for which was made after deducting tax at source and the genuineness of the expenditure was not doubted, merely and ....
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....paid during the year but the same was not debited to P&l account following matching principal. But as the same is incurred during the year, the same has been claimed as expenses. Further, the assessee vide letter dated 7.12,2012 further clarified that commission was paid to Maharashtra Enviro Power Ltd. during the year for procurement and service of order, The transaction on which commission is paid has been executed in subsequent year. So following the matching principal of accounting said commission amount is carried forward in the subsequent year in books of accounts. But as the same is due and incurred during the year the same has been claimed as expenses in the computation of income. The contention of the assessee is not acceptable, as the income from profits and gains of business or profession shall be computed in accordance with the provisions contained in section 30 to 43D of the I.T. Act. During the relevant accounting year any liability due or accrued (paid / not paid / payable) is required to be routed through Profit & Loss account. The amount of commission was not routed through Profit & Loss account, therefore, the same is not allowable as deduction in computation of i....
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....r departments), Assisting in Delivery of Goods from Transport warehouse to Customer Stores, Release and collection of Payments, Deposit of cheques in local branch of our Bank, After Sales Support to Customer due to proximity, Representing us at Customers various departments for day to day follow up and support. This follow up / support includes visits to all areas which are in the remote places. This becomes economically viable for us as otherwise we would have to open our office near to customers place and also appoint sufficient staff for daily support. In addition to the above, a Commission of Rs. 48853351/- (Rupees Four Crores Eighty Eight Lakhs Fifty Three Thousand Three Hundred Fifty One Only) was paid to Maharashtra Enviro Power Limited during the year for commission due to them for procurement and service of order. The Transaction on which Commission is paid executed in subsequent year. So, following matching principal of accounting the said commission amount is carried forward in subsequent year in books of account. But as the same is due and incurred during the year, the same has been claimed as expense in the Computation of Income. We enclose herewith v....
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....to believe that any income chargeable to tax has escaped assessment for any assessment year, he may, subject to the provisions of sections 148 to 153, assess or reassess such income and also any other income chargeable to tax which has escaped assessment and which comes to his notice subsequently in the course of the proceedings under this section, or recompute the loss or the depreciation allowance or any other allowance, as the case may be, for the assessment year concerned (hereafter in this section and in sections 148 to 153 referred to as the relevant assessment year) : ............... Provided that where an assessment under sub-section (3) of section 143 or this section has been made for the relevant assessment year, no action shall be taken under this section after the expiry of four years from the end of the relevant assessment year, unless any income chargeable to tax has escaped assessment for such assessment year by reason of the failure on the part of the assessee to make a return under section 139 or in response to a notice issued under sub-section (1) of section 142 or section 148 or to disclose fully and truly all material facts necessary for his as....
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....beyond a period of four years from the end of the relevant assessment year. There was no allegation in the reasons which had been disclosed to the assessee that there was any failure on his part to fully and truly disclosed material facts necessary for assessment for relevant assessment year. Hence, the jurisdictional condition for reopening the assessment beyond a period of four years had not been fulfilled. Even during the course of hearing, it had not been the submission of the revenue that there was any suppression of material facts on the part of the assessee. Therefore, the impugned notice was to be set aside." 12. In another case of First Source Solutions Ltd. vs. ACIT in [2021] 438 ITR 139 (Bombay), the Hon'ble Jurisdictional High Court, held as under:- "11. Therefore, when the assessment is sought to be reopened after the expiry of period of four years from the end of the relevant year, the proviso to section 147 stipulates a requirement that there must be a failure on the part of the assessee to disclose fully and truly all material facts necessary for his assessment for that year. This stipulation does not govern a notice for reopening within a period of four....