9911796707
TMI Blog2010 (6) TMI 621X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) of the Income-tax Act, 1961. 2. The assessee is engaged in the business of trading in rock-breaking hammers and acting as service agents. The assessee returned a total income of Rs. 4,23,51,670 for the assessment year under appeal. The total turnover reported by the assessee was Rs. 20,92,15,472. In the course of the business, the assessee had to make purchases of materials on credit basis from different parties across India. According to the assessee, such activities involved payment of commission. 3. In the course of assessment proceedings, the Assessing Officer on the basis of scrutiny of accounts and details, made the following additions to the total income returned by the assessee : (a) Credit purchase in the case of M/s. Hydrot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax (Appeals) have also erred to appreciate the fact, that the whereabouts of M/s. Hydrotech Tamilnadu were not known as the same was reported by the postal authorities and the Inspector of Income tax. (vi) The Commissioner of Income-tax (Appeals) has erred in deleting the addition of Rs. 35,02,932 being the commission paid to various parties. (vii) The Commissioner of Income-tax (Appeals) has erred in appreciating the fact that the assessee had failed to prove the genuineness of payments made towards commission. (viii) The Commissioner of Income-tax (Appeals) has also erred in appreciating the fact that the assessee had even failed to produce the confirmation letters from those parties who were in receipt of commission. (ix) The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Metal Crushers and adjustment of the advance against the billed amount. The accounts itself show that the advance amount has been subsequently converted into sale proceeds of the assessee which has been accepted by the Assessing Officer as part of the turnover of the assessee. Therefore, we find that in the light of the materials available before the Commissioner of Income-tax (Appeals), he was justified in deleting the said addition of Rs. 2,10,000. 8. Regarding the disallowance of Rs. 35,02,932 relating to commission, the Commissioner of Income-tax (Appeals) found that the assessee had paid commission of Rs. 35,29,282 which was one of the predominant factors which helped the assessee to procure a turnover of Rs. 20,92,15,472 in the prev ..... X X X X Extracts X X X X X X X X Extracts X X X X
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