9911796707
TMI Blog2012 (12) TMI 459X X X X Extracts X X X X X X X X Extracts X X X X ..... s 1988-89, 1989-90 and 1990-91, deduction of the payment of commission has been allowed. Income Tax Appellate Tribunal has not applied it's mind to the evidence on record and has illegally set aside the order the Commissioner of Income Tax (Appeals) without considering the reasons recorded by it. Appellate Tribunal is illegal and is liable to be set aside - case remanded back for reconsideration. - ITA No. - 430 of 2012 - - - Dated:- 10-12-2012 - R.K. AGRAWAL, AND RAM SURAT RAM (MAURYA), JJ. Petitioner Counsel: - Rakesh Kumar Respondent Counsel: - Shambhu Chopra Delivered by Hon'ble Ram Surat Ram (Maurya), J 1. Heard Sri Rakesh Kumar, the counsel for the appellant and Sri Shambhu Chopra, Senior Standing Counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... esent appeal are as follows: The appeal relates to the assessment year 1993-94. M/S General Trading Company (the assessee) is carrying on business of distribution of cement, manufactured by Birla Jute Industries Ltd. (the company) under the appointment letter dated 12.08.1991 of the company. Under this appointment letter, the assessee is authorized to appoint sub-distributors at it's own level for which the company is not liable to make any payment. The commission of the assessee was Rs. 5/- per tonne. The assessee appointed three sub-distributors namely:- (i) M/S Khajuraho Traders Lucknow, (ii) Ruhelkhand Agency, Bareilly and (iii) Adarsh Enterprises Agra, on the commission of Rs. 3/- per tonne. The assessee submitted it's Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peal and deleted the addition. The Revenue feeling aggrieved filed an appeal before the Tribunal. The Tribunal by the impugned order held that the order of the Assessing Officer and the Commissioner of Income Tax (Appeals) are cryptic and there were no discussion of the evidence collected by the Assessing Officer as such he set aside both the orders and remanded the matter to Assessing Officer for fresh decision on merits. 5. The counsel for the appellant submitted that there is strong competition in the business as several companies are manufacturing cements. In order to increase the sale of the cements in the market, local distributors were appointed by the assessee. Since under the appointment letter, the commission of the assessee w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mission paid to sub-distributors as such the order of the Tribunal is liable to be set aside. 6. We have considered the arguments of the counsel for the parties. It has come on record that the assessee appointed three sub-distributors as stockists for selling cement. Sub-distributors were providing services of stockist, taking orders from local customers for sale of cement and supplying/selling the cements to the local customers as such they were entitled to get commission on the sales effected by them. It has been proved by the assessee that actual commission was paid to the sub-distributors. Earlier for the financial years 1988-89, 1989-90 and 1990-91, deduction of the payment of commission has been allowed. Income Tax Appellate Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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