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Issues Involved:
The judgment involves the issue of deduction of commission paid to commission agents for the assessment year 1975-76, specifically focusing on the identification and genuineness of the commission payments made to C.B. Singh and Vandana Sales Corporation. Summary: Identification of Commission Agents: The assessee, engaged in the business of manufacturing and supplying machinery, paid commission to three commission agents for transactions with various entities. The Inspecting Assistant Commissioner disallowed the deduction of commission paid to C.B. Singh and Vandana Sales Corporation due to the failure to establish their identities. Summonses sent to the agents returned unserved, leading to doubts about their existence. The Commissioner (Appeals) allowed the deduction, noting payment methods and addresses provided by the assessee. Legal Precedents and Arguments: The assessee argued that evidence, including bank drafts and cheques, supported the existence of the commission agents. Legal precedents such as S. Hastimal v. CIT and Addl. CIT v. Bahri Bros. P. Ltd were cited to support the contention that the assessee had fulfilled its primary onus of proving the identity and genuineness of payments. The Revenue contended that the burden of proof lay with the assessee. Judgment and Conclusion: The High Court found that the assessee had established the identities of the commission agents and the genuineness of payments through evidence of correspondence and payment methods. The Tribunal's reliance solely on unserved summonses four years after the transactions was deemed insufficient to discredit the assessee's case. Consequently, the question was answered in favor of the assessee, allowing the deduction of commission payments. The judgment was delivered by Mrs. Monjula Bose, with agreement from Judge D. K. Sen.
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