DIPAL CHEM PRIVATE LIMITED,,AHMEDABAD vs. ITO, WARD:1(1)(4),, AHMEDABAD

This appeal has been filed by the Assessee is directed against the order of the Ld. CIT(A) vide Appeal No. CIT(A)-1/ITO Ward-1(1)(4)/197/2016-17 order dated 2 . A.Y. 2013-14 16/10/2017 arising out of assessment order dated 05/02/2016. The assessee has taken following grounds of appeal: 1) The Ld. CIT(A) erred in law and on facts in confirming the disallowance of Commission expenses amounting to Rs. 27,53,944/-, such disallowance is requested to be deleted.

During the year under consideration, assessee has claimed certain commission expenses made to the different parties and payments were made through cheque and in some of the cases, TDS was also deducted. But when Ld. A.O. issued noticed to the person to whom commissions were made. They did not appear before the Ld. A.O. and assessee could not produce recipient of commission and thereafter ld. A.O. disallowed commission expenses of Rs. 27,53,944/-.

Thereafter assessee preferred first statutory appeal before the ld. CIT(A) who confirmed the action of the Assessing Officer.

Now assessee has come before us by way of second statutory appeal.

We have gone through the relevant record and impugned orders. In this case, commissions have been paid by the assessee to different parties and their Income Tax return have been filed by the assessee and in some of the cases, TDS has also been deducted by the assessee. But lower authorities disagree with the contention of the assessee and held that assessee could not prove genuineness of the transaction for which commissions have been paid. We consider it appropriate that in order to do business assessee had to pay commission otherwise how assessee carry on its business activities.

In the result, appeal filed by the Assessee is allowed for statistical purposes.