9911796707
TMI Blog2012 (7) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... th the probation period of six months. Thereafter, the employee was to activate the connections sold by the assessee. The payment was as per the activated connections. Section 17 (1)(iv) provides for “salary” to include, inter alia, any commission in view of or in addition to any salary. The payment in the present case being on the basis of the activated connections, was a part of salary - as the payments in question are covered within the definition of “salary” in terms of section 17 it cannot be hit by the provisions of section 194 H - against revenue. - ITA NO. 769(Del)2010 - - - Dated:- 31-5-2012 - SHRI A.D. JAIN, SHRI A.N. PAHUJA, JJ. Appellant by: Smt. Veena Joshi, Sr. DR Respondent by: Shri V.K. Goel, Advocate OR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd loss account; that since the assessee had shown commission expenses in the profit and loss account, it meant that the commission had actually been paid by the assessee to its sales agents. On observing so, the AO disallowed the commission expenses of Rs. 10,33,985/- without deduction of tax, under the provisions of section 40(a)(ia) of the Act and added it to the income of the assessee. 3. By virtue of the impugned order, the ld. CIT(A) deleted the addition/disallowance. 4. Aggrieved, the Department is in appeal. 5. Challenging the impugned order, the ld. DR has contended that while wrongly deleting the disallowance, the ld. CIT(A) has failed to consider the fact that the payment of commission was reflected as such, i.e., as comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (copy placed on record). 7. We have heard the parties and have perused the material on record. The payment in question, undoubtedly, was made to the employees of the assessee firm, under specific appointment letters. Clause (1) of the appointment letter reads as follows:- (1) You would be paid salary on the basis of activated connections of Tata Indicom including all benefits apart from conveyance. 8. The payment, therefore, is in line with the specific condition contained in the appointment letter. That being so, the AO obviously erred in observing that the stand taken by the assessee was a mere after-thought so as to avoid taxability. The payment, it is seen, was on the basis of activation of connection. The employees of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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