2026 (4) TMI 331

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....,00,00,000/- made by AO on account of disallowance of Commission Expenses paid to Shri Vipul Shah, MD of the Company without appreciating that: (i) The assessee has submitted inconsistent justification that the director was paid commission as incentive for increase in turnover, which contradicts the resolution for payment of commission as a percentage of total turnover (not increase in turnover) and the same has been decided within first quarter of the year without any consideration to the business performance of the company during the year. (ii) The assessee has failed to establish specific efforts made by the director to justify the payment of commission. (b) The appellant craves leave to add, alter and/or to am....

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.... of Rs. 2 crore on account of disallowance of commission expenses paid through Vipul J. Shah without appreciating the fact that the assessee submitted inconsistent justification that the director was paid as incentive for increase in turnover, which contradicts resolution for payment on commission as a percentage of total turnover and not for the increase in turnover. The Ld. DR further submitted that the commission to the Shri Vipul J. Shah was given without any basis for his performance to increase the business for the company during the year. In fact, he is doing the same work for which he is getting remuneration as well. Thus, the assessee before the Assessing Officer as well as before the CIT(A) did not gave any evidence that his perfo....