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ITAT allowed commission as expenses incurred for business purpose
ITAT allowed commission as expenses incurred for business purpose
Ashiana Ispat Ltd was into manufacturing and trading of TMT bars and MS ingots. It claimed expenses under brokerage and commission at Rs. 95,44,810. AO asked it to produce commission agents for examination.Assessee did not produce any commission agent. AO disallowed commission. CIT(A) deleted the addition. ITAT held that books of account had been accepted, and thus allowed commission as expenses incurred for business purpose.-500607
1. Ashiana Ispat Ltd was into manufacturing and trading of TMT bars and MS ingots
2. It filed return declaring total income of Rs. 2,43,32,535.
3. It claimed expenses under the head brokerage and commission at Rs. 95,44,810.
4. AO asked it to produce the commission agent/brokers for examination.
5. Assessee did not produce any commission agent for examination.
6. AO held that no services had been rendered by the so claimed brokers to warrant any commission and held that commission.
7. AO disallowed commission.
8. CIT(A) deleted the addition.
The ITAT held as under:
9. The books of account are audited which has been accepted by the Assessing Officer, sale and purchase have been treated genuine, but doubted the commission payment and the learned Assessing Officer made addition on surmises and conjectures.
10. Therefore, we are of the considered view that commission paid by the assessee either on sale and purchase are allowable as the expenses incurred wholly and exclusively for the purpose of business U/s 37 of the Act.
11. By respectfully following the Coordinate Bench decision in assessee's own case on identical facts and circumstances, we uphold the order of the ld CIT(A).
Case Reference - Deputy Commissioner of Income Tax vs M/s Ashiana Ispat Ltd.
IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES, JAIPUR
BEFORE: SHRI T.R.MEENA, AM & SHRI LALIET KUMAR,
ITA No. 535/JP/2015
(Assessment Year : 2010-11)
