LAXMI BOARD AND PAPER MILL LTD,MUMBAI vs. ACIT 10(2), MUMBAI

We have considered the rival submissions and perused the material available on record. The facts in brief are that the assessee claimed trade commission amounting to Rs 2,78,13,197/-. On scrutiny of the details it was found that the assessee paid Rs 1,35,16,728/- to twenty parties for the services provided by them with respect to sales. The details of such parties are available in the assessment order. Due to variation in the rates, the learned Assessing Officer issued notices u/s. 133(6) to the parties and certain anomalies were noted. Some of the parties duly confirmed the transaction of purchases but as per the Revenue for remaining parties the assessee could not justify the payment of commission thus, out of the commission the learned Assessing Officer disallowed Rs1,25,99, 445/-. On appeal before the CIT(A) the factual matrix was considered and out of the disallowed commission of Rs 1,25,00,445/- deleted the addition of Rs 83,27,725/- and the remaining amount of Rs 41,72,725/- was confirmed. Before us the assessee has furnished the additional evidence and contended that the assessee is in a position to substantiate the claim and due to certain unavoidable circumstances, could not file the details before the learned CIT(A). We are of the view that the mandate of Article 265 of Constitution of India is to levy and collect due taxes therefore, we remand this appeal to the file of the learned Assessing Officer to examine the claim of the assessee afresh. The assessee is directed to furnish the necessary evidence before the learned Assessing Officer to substantiate its claim for which due opportunity of being heard be provided to the assessee. The appeal of the assessee is allowed for statistical purposes only.