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

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.

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.

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.

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

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

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.

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.

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