M/S. JUMBO BAG LTD.,CHENNAI vs. ACIT, CC - IV(2), CHENNAI

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ITA 3270/CHNY/2019Status: DisposedITAT Chennai23 April 2021AY 2011-124 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the issue needed further detailed inquiry and verification. Therefore, the appellate order was set aside, and the issue was remitted back to the Assessing Officer for a fresh decision.

What were the facts?

The assessee paid commission to Shri Deepak Menon and Alreef International without deducting TDS. The Assessing Officer added the commission amount to the total income, stating lack of correspondence and basis for payment. The CIT(A) confirmed this, citing insufficient evidence of genuineness and service rendering.

What were the issues?

Whether the commission payments made by the assessee were genuine and supported by adequate documentation to establish the services rendered, and if TDS was required.

Which sections of the Income-tax Act were involved?

Section 5(2b),Section 9(1)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI

Before: SHRI V. DURGA RAO & SHRI G. MANJUNATHA

Hearing: 07.04.2021Pronounced: 23.04.2021

आदेश / O R D E R

PER V. DURGA RAO, JUDICIAL MEMBER:

1.

This appeal filed by the assessee is directed against the order of the learned Commissioner of Income Tax, (Appeals)-6 in dated 19.09.2019 relevant to the Assessment Year 2011 - 2012.

2.

In the Assessment Order, the Assessing Officer has noted that the Assessee has paid a commission of Rs.68,05,238/- to Shri Deepak Menon and also an amount of Rs.23,46,192/- to Alreef International and no Tax Deducted at Source [TDS] was deducted for the commission payment. According to the Assessing Officer, the Assessee has also not filed any such correspondences between Shri Deepak Menon and the Assessee in this regard. The Assessing Officer also pointed out that the Assessee has also not filed any basis for the commission payment. He further noted that as per the provisions of Section 5(2b) r.w.s.9(1)(i) of the Income Tax Act, 1961, the entire amount of Rs.91,51,430/- is taxable in India and accordingly he added to the total income of the Assessee.

3.

On appeal, the learned Commissioner of Income Tax (Appeals) confirmed the order of the Assessing Officer on the ground that the Assessee has not filed requisite documents and evidences to establish the genuineness of the commission payment and the details as to where the services were actually rendered.

3 -: 4. On appeal before us, the learned Counsel for the Assessee has pointed out that all the details were filed before the Assessing Officer as well as the learned Commissioner of Income Tax (Appeals) that could be seen in pages 9, 10, 11 & 12.

5.

On the other hand, the learned Departmental Representative has strongly supported the orders of the authorities below.

6.

We have heard both the sides, perused the materials available on record and gone through the orders of the authorities below.

7.

In the Assessment Order, the Assessing Officer has pointed out that the Assessee has not filed any correspondence with Shri Deepak Menon nor also submitted the basis for the commission payment. The learned Commissioner of Income Tax (Appeals) has pointed out that the Assessee has not filed any details in respect to the services rendered and the genuineness of the commission payment.

8.

Keeping in view the above facts and circumstances of the case, we are of the opinion that the issue needs to be remitted back to the Assessing Officer for detailed enquiry and verification.

4 -: Accordingly, we set aside the appellate order and remit the issue back to the Assessing Officer with a direction to decide the issue de novo in accordance with law.

9.

In the result, the appeal of the Assessee in is allowed for statistical purpose.

Order pronounced on 23rd April, 2021 in Chennai.

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