9911796707
TMI Blog2013 (11) TMI 1247X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Laxmi & Co. in respect of manufacture and sale of production to justify huge commission - Decided against assessee. - Income Tax Appeal No. - 134 of 2001 - - - Dated:- 20-9-2012 - Hon'ble Sunil Ambwani And Hon'ble Aditya Nath Mittal,JJ. For the Petitioner : R. R. Kapoor, Suyash Agarwal For the Respondent : S. S. C. ,B. J. Agarwal ORDER 1. We have heard Sri R.R. Agarwal for the appellant. Sri Govind Krishna appears for the respondent. 2. This Income Tax Appeal under Section 260-A of the Income Tax Act, 1961 (the Act) has been filed against the order dated 15.11.2001, passed by the Income Tax Appellate Tribunal, Allahabad Bench, Allahabad in Income Tax Appeal No. 1068(Alld)/1994 for Assessment Years 1990-91, connected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the the Income Tax Appellate Tribunal, in paras 4, 5 and 6 of the order are as follows:- "4. On verification, it is found that constitution of M/s. Laxmi Co., a partnership firm consists of following partners: 1. Sri LC Gupta, (HUF) - represented by Sri LC Gupta; 2. (late) Sri H.P. Gupta (HUF) - represented by Smt. Shanti Devi Gupta widow of (Late) H.P. Gupta; 3. Smt. Saroj Gupta wife of Sri H.C. Gupta; and 4 Smt. Ram Janki wife of Sri G.C. Gupta. 5. It is further seen that Sri H.C. Gupta holding 27 % share of the assessee firm is husband of Smt. Saroj Gupta, partner of M/s. Laxmi Co., Smt. Shanti Devi, another partner holding 27 % share in the assessee firm is wife of Sri H.P. Gupta, a partner in M/s. Laxmi and Co., Sri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same as in the earlier years. It is further seen that the constitution of M/s. Laxmi Co. show that except Sri L.C. Gupta (HUF) rest of other members are ladies and house wives representing interest of HUF. They are not in a position to offer any professional advice on matters relating to production, market survey or procurement of orders etc. Sri L.C. Gupta is engaged as Manager (Finance) with the assessee firm also. Considering all the facts and circumstances and without prejudice to any finding of Hon'ble Appellate authorities for the earlier years, I am holding that the services rendered by M/s. Laxmi Co. to the assessee firm are nominal and the amount of commission paid is excessive and unreasonable having regard to the fair mar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ta was engaged as Manager (Finance) with the assessee firm. The Tribunal also upheld the finding that assessee has taken substantial amount as loan from the relatives including partners of Commission Agent M/s. Laxmi Co, and had paid a high rate of interest. The findings recorded by the Tribunal that there was no service provided by the partners of M/s. Laxmi Co. in respect of manufacture and sale of production to justify huge commission are findings of fact, which does not call for any interference. 7. We further find that the questions whether assessment of commission was excessive or unreasonable is subject of discretion of the income tax authorities to be exercised under Section 40 A (2) (a) of the Act on the basis of material on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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