SHRI VINOD M. SHAH, HUF,AHMEDABAD vs. THE INCOME TAX OFFICER, WARD-5(3)(3), AHMEDABAD

The assessee has raised following grounds of appeal:-

In this case there are three ground of appeal. The Ld. Counsel has not pressed ground no. 1 and 2. Therefore, these grounds of appeal are dismissed as not pressed. The Ld. Counsel has pressed the ground no. 3 which is against the decision of Ld. CIT(A), Ahmedabad-5 in confirming the addition of Rs. 41,41,034/- being commission expenses.

The fact in brief is that the return of income declaring income of Rs. 15,93,670/- was filed on 30.09.2012. Subsequently the case was selected under scrutiny by issuing of notice u/s. 143(2) of the Act on 08.08.2013. In respect of the issue in appeal pertaining to commission expenses the AO has noticed that assessee has debited commission expenses to the amount of Rs. 41,41.034/-. The AO has asked the assessee to furnish the supporting detail of the recipient and details of services rendered by them for the assessee. On verification of the detail furnished the AO has noticed that assessee has furnished vouchers for commission expenses to the amount of Rs. 24,57,478/- only. The AO has further noticed that the voucher were not contained the details of the address of the agents, services rendered/sales made by their efforts etc. The assessee has explained that assessee paid the commission by cheque and they have also deducted necessary TDS from such expenses. The AO has not accepted the explanation of the assessee stating that the assessee has not submitted complete information i.e. contra account from the person, detail of address etc. The AO has stated that assessee has also not furnished the copy of return of income from which it can be confirmed that the recipient has offered the commission income from the assessee. Therefore, the AO 2

Aggrieved assessee has filed appeal before the Ld. CIT(A). The Ld. CIT(A) has dismissed the appeal of the assessee reiterating the same reason cited by the AO while disallowing the commission expenses.

On the other hand the Ld. DR has relied on the order of the lower authorities.

We have heard both the sides and perused the material on record. The assessee has claimed an amount of Rs. 41,41,034/- under the head of commission expenses. The AO has disallowed the commission expenses stating that certain detail has not been furnished as a result the genuineness of the expenditure could not be verified. With the assistance of Ld. Representatives we have gone through the material placed in the paper book submitted by the assessee during the course of appellate proceeding and it is noticed that at Sr. No. 7 from Page No. 37 to 101 the assessee has given summary of commission ledger along with confirmation, addresses, bank statement and copy of income tax return filed by the commission recipient parties. After perusal of the aforesaid information we considered that the AO has failed to controvert the aforesaid information provided by the assessee with any specific finding, therefore, we are not inclined with the decision of Ld. CIT(A). Accordingly, we restore this case to the file of AO to verify and

In the result, this appeal of the assessee is allowed for statistical purposes.