2026 (7) TMI 1893

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....j Kumar Tiwari, Sr. DR ORDER PER MANISH AGARWAL, A.M.: The present appeal is filed by assessee against the order dated 09.10.2025 passed by Ld. Commissioner of Income Tax (Appeals)/ADDL/JCIT(A)-3, Bengaluru ["Ld. CIT(A)"] in Appeal No. CIT(A), Faridabad /10447/2018-19 u/s 250 of the Income Tax Act, 1961 ["the Act"] arising out of assessment order dated 23.12.2018 passed u/s 143(3) of the ....

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....ned the Remand Report from the AO on 02 (two) occasions and thereafter, confirmed the disallowance of INR 4,16,243/- made out of various expenses however, has reduce the disallowance of advertisement expenses of INR 6.00 Lakhs to INR 84,900/-. With respect to the disallowance of commission expenses of INR 34,72,800/-, ld. CIT(A) held the said payment as salary to various employees and since the as....

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....eding year. He therefore, prayed that Ld.CIT(A) has wrongly invoked the provisions of section 40(a)(ia) of the Act and requested for the deletion of disallowance so confirmed. 5. On the other hand, Ld. Sr. DR for the Revenue vehemently supported the order of Ld.CIT(A) and stated that though the assessee has claimed the said expenditure as commission however, after verification of the details fi....

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....nt and should be the average of total estimated tax liability of the employee. It is observed that the claim of the assessee was that it is the first year of business and therefore, provision of section 40(a)(ia) of the Act could not be applied. However, while upholding the disallowance at page 22 of the appellate order, ld. CIT(A) has reproduced the copy of bank book furnished by the assessee, ac....