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TMI Blog2013 (7) TMI 572X X X X Extracts X X X X X X X X Extracts X X X X ..... of the case are summarised herein below : The appellant-assessee was a del credere selling agent of M/s. Hind Spinners and M/s. Hind Syntex Ltd., Dewas, pursuant to the agreements for selling of the yarn manufactured by these companies in the territory of District of Bhilwara, Rajasthan, the appellant received commission to the extent of Rs. 45,81,710 and a sum of Rs. 19,93,474 was claimed as brokerage payable on the sale effected through sub-brokers. The appellant accordingly claimed the said amount of Rs. 19,93,474 as had been paid/ payable to various sub-brokers, who acted as sub-brokers, the appellant claimed that they in fact, provided services and were paid accordingly. The learned Deputy Commissioner of Income-tax, Circle, Bhilwar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee did not incur the said expenditure, it was merely claimed but no services were rendered by the said sub-brokers. Aggrieved by the order passed by the learned Assessing Officer, the appellant-assessee preferred an appeal before the learned Commissioner of Income-tax (Appeals) (in short "the CIT (A)"), who considered the matter at length and initially, remanded the matter back to the learned Assessing Officer to verify the veracity of the details submitted by the appellantassessee before the learned Commissioner of Income-tax (Appeals) as well as affidavits filed before him (Commissioner of Income-tax (Appeals)). The learned Assessing Officer in remand proceedings conducted detailed inquiry as was directed by the learned Commissioner o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brokerage which resulted in several lakhs of rupees ; and, lastly, it was observed by the Commissioner of Income-tax (Appeals) that payment was not made even in the subsequent years. Thus, the learned Commissioner of Income-tax (Appeals), ultimately came to the conclusion that the sub-brokers did not render any service and not a single penny out of substantial commission due to them was paid and it does not accord with the human probabilities, thus sustained the disallowance. Aggrieved by the said appellate order, the appellant preferred an appeal before the learned Income-tax Appellate Tribunal, Jaipur Bench, Jaipur (in short "the ITAT"). The learned Income-tax Appellate Tribunal, vide its order dated May 20, 2011, upheld the disallowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13,24,400 and its income was below Rs. 40,000 and, therefore no return of income was filed. The credit balance in respect of M/s. Shivam Agency as well as M/s. Nakoda Yarn remained the same till March 31, 2003. A sum of Rs. 2,24,553 has been written off in the account of M/s. Nakoda Yarn. Similarly, Lodha Yarn Suppliers is having credit balance of Rs. 13,29,643 as on March 31, 1998, and the same continued till March 31, 2004, as per the details filed on March 29, 2002. This party has also stated in the affidavit that it has not filed income-tax return because income is below Rs. 40,000. In the case of M/s. Surekha Synthetics, the credit balance as on March 31, 1998, is Rs. 8,01,382 and its income was below the taxable limit. In the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be ignored for persons like sub-brokers or men of no means who render services to some but do not receive any amount for years together. None would leave hard earned money, for their day-to-day needs if actual services have been rendered by the said persons. It was upon the appellant to discharge the onus which heavily lay on him and he miserably failed for the reasons stated herein before. The hon'ble apex court, in the case of CIT v. Durga Prasad More [1971] 82 ITR 540 (SC), has observed as under (page 545) : "Now, coming to the question of onus, the law does not prescribe any quantitative test to find out whether the onus on a particular case has been discharged or not. It all depends on the facts and circumstances of each case. In so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed unreasonably and that finding that the said amounts are income of the appellant from other sources is not based on evidence." The learned counsel for the appellant-assessee Mr. Gargeiya took us through the various orders and submitted that substantial questions of law arise out of the order of the learned Income-tax Appellate Tribunal and that the order passed by the learned Income-tax Appellate Tribunal is perverse and that the learned Income-tax Appellate Tribunal has recorded finding which is perverse in nature to arrive at the findings and contrary to the facts on record. We have considered the submissions of the learned counsel for the appellant and have perused the order of the learned Income-tax Appellate Tribunal and are not per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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