2025 (3) TMI 1689

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....va - Ld. SR. DR ORDER MANOJ KUMAR AGGARWAL (ACCOUNTANT MEMBER) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2018-19 arises out of an order of Learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 27-05-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 22-04-2021. Having heard vehement arguments of both the sides and ....

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....ring FY 2011-12. The assessee stated that it was actually an effort to clear the unsold inventory. The assessee tabulated commission paid for each of the flats along with details of TDS deducted, mode of payment, rate of commission for each of the payees. All the payees had PAN Numbers. 2.2 The Ld. AO held that the assessee paid commission in the range of 6% to 41% which was very high in real e....

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....ny past record in selling flats and had no experience in real estate business. Finally, entire commission of Rs. 80.02 Lacs was disallowed and added back to the income of the assessee. The Ld. CIT(A) held that there was no justification for the assessee as to why it had selected only 17 inexperienced persons and why each helped in selling one / two projects. Aggrieved, the assessee is in further a....

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....ded that the assessee had discharged the onus of proving these payments and such payments meet the requirement of Sec. 37(1). The only allegation of lower authorities is that rate of commission was very high. However, the same overlook the factual matrix in which the commission has been paid. The assessee has paid high commission to liquidate old inventories and the same would save maintenance cos....