M/S PRAMOD KUMAR AGARWAL,JAIPUR vs. INCOME TAX OFFICER, WARD-6-2, JAIPUR

2. Rival contentions have been heard and record perused. Facts in brief are that the assessee is engaged in the business of manufacturing, trading and export of jewellery. In the return of income, the assessee claimed commission in respect of export order paid to Shri Gautam Singh Mehta and M/s Gautam Singh Mehta HUF on account of sales made through them to M/s Creative Beeds. The A.O. disallowed the same and by the impugned order, the ld. CIT(A) confirmed the action of the A.O.. Now the assessee is in further appeal before the ITAT.

At the outset, the ld AR of the assessee placed on record the order of the Tribunal in assessee’s own case for the A.Y. 2011-12 dated 28/05/2018 wherein issue with regard to claim of commission was decided by the Tribunal. The Tribunal held that the commission is to be allowed at 2% of the sales made to M/s Creative Beeds through these two persons. Facts and circumstances of the case are same and during the year under consideration also the commission has been paid in respect of sales to M/s Creative Beeds. Respectfully following the order of the Tribunal in assessee’s own case, I direct the A.O. to 3 ITA 1519/JP/2018 M/s Pramod Kumar Agarwal Vs ITO allow commission @ 2% of the sales affected through these two persons. I direct accordingly.

In the result, appeal of the assessee is allowed in part.