9911796707
TMI Blog1978 (9) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... l take up assessee's appeal first. Paras 2 and 5 are not relevant to controversies relating to cash credits and commission and are not being reproduced here--Editor 6. The Departmental appeal is against the allowance of Rs. 15,780 claimed as commission paid to Shri S.L. Lakhotia. The ITO did not allow it, on the ground that neither Shri S.L. Lakhotia was an existing assessee nor there was an agr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion is paid at 1 per cent of the price fixed by the Defence Authorities. It has been contended that Shri Lakhotia is not paid any salary for this service. I have considered the submissions made. The payment is made on account of commission to Shri Lakhotia for maintaining higher productivity. The payment is related to the prices and the quantity of the articles produced. It is not the ITO's case t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowed by the ITO. There was no agreement between the assessee and Shri S.L. Lakhotia which would indicate the basis of the commission. In the absence of any documentary evidence to show Shri S.L. Lakhotia rendered any services to the assessee, we are of the view that the commission as claimed was rightly disallowed by the ITO. We, therefore, reverse the order of the AAC and restore that of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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