TaxTMI 
TaxTMI 
2026 (1) TMI 915
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.... Delhi-10/10525/2016-17 u/s 250 of the Income Tax Act, 1961 ["the Act"] arising out of separate assessment orders dated 11.03.2016 and 30.12.2016 passed u/s 143(3) of the Act pertaining to Assessment Years 2013-14 & 2014-15 respectively. 2. The issues being common, interlinked and inter-connected in the both the captioned appeals filed by the assessee for different Assessment Years, therefore, same are heard together and accordingly, adjudicated by a common order. 3. First we take the assessee's appeal for AY 2013-14 in ITA No. 699/Del/2024. ITA No.699/Del/2024 [Assessment Year 2013-14] 4. Brief facts of the case are that assessee was proprietor of M/s. Gappu Ispat, engaged in the business of trading of iron & steel and filed hi....
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....rther erred in charging interest u/s 234A and 234B of the Income Tax Act and raising an aggregate demand of Rs. 20,38,330/-. Thus failing to appreciate that no such interest was leviable on the facts of the instant case and in any case and without prejudice the same had to be calculated in accordance with the statutory provisions. 7. That the assessment thus framed is, otherwise bad in law and is totally unsustainable, in as much as the same has been framed by disregarding evidence placed by the assessee in support of its return of income. 8. That the learned A.O. has further erred in levying interest u/s 234B and 234C of the I.T. Act." 7. Ground of appeal Nos.1 to 9 taken by the assessee are with respect to the disallo....
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....tements and ITRs. In some cases, affidavits of the recipients were also filed wherein they have accepted the rendering of services and receipt of commission. All the payments of commission were made through banking channel after deducting tax at source and the recipients parties have included the same in their returns of income and paid taxes thereon. Once the assessee has been able to establish the identity of the parties to whom commission is paid and the payments were made through banking channels and they have accepted the rendering of services to the assessee, the commission paid to them towards such services cannot be disbelieved and should be allowed as genuine expenditure. 10. It is further seen that AO has accepted the sales dec....
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.... discussed in the body of assessment order. 16. Before us, both the parties has admitted that the facts and circumstances of the case are the same as existed in preceding year i.e. AY 2013-14 and further admitted that the allegation made by the AO for making disallowance are also same. The ld. AR as well as ld. Sr. DR also relied upon the submission made in ITA No.699/Del/2024 on this issue. 17. After considering the submissions of both the parties and perusal of the record, we find that in this year also, assessee has filed all the relevant details to establish the payment of commission as genuine which includes their confirmation, copy of ITR, ledger accounts and in some cases, affidavits of recipients were also filed. The payments ....
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....n the year under appeal. The amounts were also outstanding since previous year. It is seen that the addition was made u/s 68 of the Act. For ready-reference, section 68 of the Act reads as under:- Cash credits. 68. "Where any sum is found credited in the books of an assessee maintained for any previous year, and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not, in the opinion of the Assessing Officer, satisfactory, the sum so credited may be charged to income-tax as the income of the assessee of that previous year : Provided that where the sum so credited consists of loan or borrowing or any such amount, by whatever name called, any explanation offered....