TaxTMI 
TaxTMI 
2025 (5) TMI 1856
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..... AO confirming the addition on account of bogus commission expenses amounting to Rs. 67,98,098/- and further enhancing the income by Rs. 66,84,362/- on account of bogus commission expenses. 04. The facts in brief are that the assessee filed the return of income on 30.09.2013, disclosing total income of Rs. 12,24,580/-, which was duly processed u/s 143(1) of the Act. The assessee is engaged in the business of trading of medical goods and equipments under the name and style of M/s Eastern Medical services. The case of the assessee was selected for scrutiny vide Computer Assisted Scrutiny Selection (CASS) and statutory notices u/s 143(2) and 142(1) of the Act were issued and duly served upon the assessee. The ld. AO observed on the basis of ....
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....it was 5.62%, whereas the same was 4.63% in A.Y. 2012-13. The ld. AO was not convinced with the reply of the assessee and also issued summons u/s 131 of the Act to different parties to whom the commission was paid requiring their personal appearance along with certain documents. However, none appeared in response to the said summons. It is also pertinent to state that the commission was paid through banking channel and finally, the ld. AO was not satisfied with the submissions of the assessee and disallowance of Rs. 67,98,098/- was made based on the preceding assessment year commission and same was added to the income of the assessee. 05. In the appellate proceedings, the ld. CIT(A) not only affirmed the order of the ld. AO, but also enhan....
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....s for payment of commission specifying the sales made/ orders for sale procurement for medical equipments from different hospitals and shops. The only reasons cited by the assessee is that since the assessee received more discount/commission from the suppliers on medical goods and equipments, therefore, same was passed on various persons for rendering services to the assessee for procuring orders and supplying the equipments to various medical colleges as well as shops. It was also submitted that the commission is received by the assessee depending on the services rendered and therefore the expenses were wholly and exclusively for the business purpose only. We note that the commission cannot be disallowed merely on the basis that the percen....