TaxTMI 
TaxTMI 
2026 (4) TMI 1380
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.... 250 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act' in short) for Assessment Year 2009-10. 2. The assessee has raised following grounds of appeal:- "1.1. That the learned CIT(A) has erred in confirming addition of Rs. 4,50,000/- being commission paid by the appellant to Reynolds Petro Chem Ltd. 1.2. That the various reasons advanced by the Ld. CIT(A) in confirming the disallowance of commission are the contrary to the facts of the case and evidence on record. 1.3. The Appellant respectfully submits that it has paid commission to Reynolds Petro Chem Ltd in respect of Purchases made by it from Ipca Laboratory Ltd. Therefore the expenses of Commission is incurred wholly and exclusively for the p....
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....red in law and on facts in not adjudicating ground challenging the reassessment proceedings initiated u/s 147 of the Act." 3.1 The assessee has raised the aforesaid additional grounds, which involve purely legal issues arising from facts already on record. The Ld. AR submitted that such additional grounds deserve to be admitted, for which he placed reliance on the decision of the Hon'ble Supreme Court in National Thermal Power Ltd. v. CIT (1998) 229 ITR 383 (SC). 3.2 We have considered the rival submissions and perused the material on record. The additional ground raised by the assessee involves a pure legal issue concerning the validity of reassessment proceedings and all relevant facts are already available on record. Respectfully f....
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....ague and do not establish any live nexus between the material and alleged escapement of income, as the name of the assessee does not appear in any incriminating material. 6.1 On merits, the Ld. AR submitted that the commission payment of Rs. 4,50,000/- is duly supported by documentary evidence such as ledger accounts, confirmations, TDS certificates, invoices and stock records and no defect has been pointed out in the books of account. 6.2 With regard to the addition of Rs. 90,00,000/-, it was submitted that no show-cause notice was issued before making the addition and the Assessing Officer has made the addition by applying a 5% commission rate without any actual purchases to support such calculation. It was further submitted that th....
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.... of the M/s Reynolds Petro Chems Ltd., Shri Sanjay Parasmal Jain was recorded u/s 131 of the Act, Shri Sanjay Parasmal Jain, deposed that M/s Reynolds Petro Chems Ltd. is not genuine and real trader of pharma products and the company is merely a facilitator between actual suppliers and sales parties. It is further deposed by Shri Sanjay Parasmal Jain that M/s Reynold Petro Chems Ltd are just paper entity. Shri Sanjay Parasmal Jain further stated that sales and commission/brokerage transactions have been executed with an intention to facilitate the real buyers and real supporters to earn commission income from both buyers and suppliers. It is also reported that, during the course of survey, it is noticed that the assessee i.e. Crystal Quinon....
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....anking channels and no defect has been pointed out in the books of account maintained by the assessee. 8.3 With regard to the addition of Rs. 90,00,000/-, we find that no specific show cause notice was issued to the assessee proposing such addition. It is also an undisputed fact that the assessee has not made any purchase from Reynolds Petro Chem Ltd and it is its purchases from Ipca Laboratories Ltd, which are supported by bills, stock records, excise documents and VAT records. We also find merit in the contention of the assessee that the entire addition is substantially based on statements of third parties recorded during survey proceedings, without providing the assessee an effective opportunity of cross examination. It is also noted ....