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Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE
Before: SHRI CHANDRA POOJARI & SMT. BEENA PILLAI
O R D E R Per Beena Pillai, Judicial Member
The present appeals are filed by the assessee against the orders dated 13/03/2023 for the assessment year 2017-18 and 10/02/2023 for the assessment year 2018- 19 respectively passed by the NFAC, Delhi. 2. It is submitted by the Ld.AR that, facts arising in respect of the issue being the subject matter of these appeals are identical. He submitted that, the disallowance was made by the Ld.AO in respect of commission made to the Director u/s 36(iii)(a) of the Act, and short fall in the amount reflected in 26AS vis-à-vis the claim of assessee declared in the books of accounts. The Ld.AR submitted that the reason for which the claim was disallowed by the Ld.CIT(A) is that, the details were not furnished in order to substantiate the commission paid at 5% of the profits before taxing that was to one of the Directors. He submitted that the commission paid to the Di4rector based on her performance and in consonance with the terms of her employment, supported by the Board Resolution. It is the submission of the Ld.AR that, these documents were never been considered before making the disallowance by the authorities.
On the contrary, the Ld.DR submitted that, the commission paid to the Director has been rightly denied for both the years under consideration, as these are dividends that have been paid in the grab of commission. He submitted that, the disallowance confirmed by the Ld.CIT(A) is correct on the mismatch in respect of the TDS appearing in 26AS, which is only pertaining to assessment year 2017-18. The Ld.DR did not object to the issue to be remanded for necessary verification.
We have considered the submission advanced by both the sides in the light of the records placed before us.
We note that the Ld.CIT(A) has not verified the claim of the assessee in the light of the documents/evidences filed on the issue of disallowance of commission. We, therefore, remand this issue to the Ld.CIT(A) with a direction to carry out necessary verification in respect of the same. 4.1 We also direct, in the event, the Ld.CIT(A) deemed to feel proper to call for remand report from the Ld.AO, he may do so, and then consider the claim in accordance with law. He shall carry out necessary verification in order to ascertain the correct nature of the payment made by the asseseee to the Director. 4.2 Needless to say proper opportunity of being heard to the assessee may be given.
In respect of mismatch of the TDS with the returns in 26AS, the Ld.CIT(A) is directed to call for remand report from the Ld.AO based on the evidences filed by the assessee. The assessee is directed to file the necessary documents in support of its claim. 5.1 Needless to say proper opportunity of being heard to the assessee may be given. Accordingly, the grounds raised by the assessee stands for statistical purpose.