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Income Tax Appellate Tribunal, BENCH ‘C’ KOLKATA
Before: Hon’ble Shri J.Sudhakar Reddy, AM & Shri S.S.Viswanethra Ravi, JM ]
This is an appeal by the Revenue against the order dated 22.12.2015 passed by C.I.T-(A)-7, Kolkata for A.Y.2008-09.
The only issue to be decided is as to whether the CIT(A) is justified in deleting the addition made on account of commission in the facts and circumstances of the case.
We find that the CIT(A) considered the issue and held that the commission alleged to have been paid by the assessee is not in the nature of commission and on an examination of bills in respect of sale of fertilisers, the CIT(A) held that it was a discount on cash memo or bill on the sale of fertilisers to Co-operative Society no deduction of TDS is required. The relevant portion of which is reproduced herein below :- “3.2 (ii) I have considered the submission made by the appellant and find sufficient force in the argument. The assessing officer has disallowed the The W.B.State Co-operative Marketing Federation Ltd. A.Y.2008-09
expenditure u/s 40(a)(ia) by placing the reliance on the nomenclature in the P&L a/c. The amount of Rs.8,60,97,686/- was not in the nature of commission it was discount allowed on cash memo or bill on the sale of fertilizers to the co- operative societies. The appellant produced some of the bills and I verified the same. In the same facts and circumstances the CIT(A) allowed the assessee’s appeal for the A.Y.2009-10, relevant part of extract of CIT(A) was reproduced in appellant’s submission.
Following the rule of consistency I delete the addition made by the A.O. amounting to Rs.8,60,97,686/- u/s 40(a)(ia) of the act. The appellant’s ground on this issue is allowed.
It is noted from the finding of CIT(A) above in the earlier years for A.Y.2006- 07 and 2009-10 and the department of Revenue accepted and allowed deduction on the same issue. The ld. DR did not bring on record any material contrary to the orders for A.Y.2006-07 and 2009-10. Therefore we find no infirmity in the order of CIT(A). Accordingly the grounds raised
by the Revenue is dismissed.
5. In the result the appeal of the Revenue is dismissed. Order pronounced in the open Court on 27.06.2018.
Sd/- Sd/- [J.Sudhakar Reddy] [ S.S.Viswanethra Ravi ] Accountant Member Judicial Member Dated : 27.06.2018. [RG Sr.PS] Copy of the order forwarded to: 1.The West Bengal Co-operative Marketing Federation Ltd., Southend Conclave, 3rd Floor, 1582, Rajdanga Main Road, Kolkata-700007. 2. I.T.O., Ward-25(3), Kolkata. 3. C.I.T.(A)-7, Kolkata 4. C.I.T.-9, Kolkata.. 5. CIT(DR), Kolkata Benches, Kolkata. True Copy By order, The W.B.State Co-operative Marketing Federation Ltd. A.Y.2008-09
Senior Private Secretary Head of Office/D.D.O., ITAT, Kolkata Benches The W.B.State Co-operative Marketing Federation Ltd. A.Y.2008-09