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TMI Blog2014 (5) TMI 994X X X X Extracts X X X X X X X X Extracts X X X X ..... agreements and confirmation, it could not be proved that the expenditure on commission had been incurred wholly and exclusively for business purpose." 2. The appellant craves leave for reserving the right to amend, modify, alter, add or forego any ground(s) of appeal at any time before or during the hearing of this appeal." 2. Brief facts are: The assessee company, incorporated on 28/1/1995, is engaged in the business of trading of medical diagnostics kits, instruments, health care products, reagents and bio chemistry products etc. During assessment proceedings the AO noticed that the assessee has shown commission payment of Rs. 52,51,743/- & g.p. rate of 25.02% on turn over of Rs. 4,95,86,142/- in A.Y. 2006-07 as against commission payme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been filed showing the details of same facilitated to these persons, copies of invoices and bills raised by the assessee company upon its customers have also been filed showing that the name of the concerned agent was given each and every invoice through whom so ever the sale was facilitated. Thus the evidence of services rendered has also been given. The services of the agents included first of all booking of sales and then approval of the product and then arranging the payments. There is no evidence with Ld. AO to show that expenses were not incurred for the purposes of the business of the assessee or that services were not rendered by any of these persons. I have gone through to the case laws relied upon by the assessee and the judgment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l filed before the respective authorities. The assessee's reply filed before AO was found to be vague and general and failed to show the business expediency of payment of commission. Ld. DR contends that it implies that ld. CIT(A) gave the part relief based on some additional evidence without any application by the assessee and without calling for any remand report from AO. The relief has been granted on the basis of material which was not before AO, therefore, the order of CIT(A) should be reversed. 4. Ld. Counsel for the assessee, on the other hand, contends that accusation of the AO that no submissions were made and the explanation was vague, is not correct, as proper submissions and details were filed. The payment of commission is allo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ld. CIT(A). Therefore, we are of the view that the learned CIT(A) has considered the facts in entirety and came to the right conclusion that the whole of the commission was deductible in computing the income. Therefore, we do not find any reason to interfere with his order. This finding is equally applicable to the facts of assessment year 2008-09, in which disallowance of a smaller sum of Rs. 5 lacs was made by the Assessing officer. Accordingly, the findings of the learned CIT(A) for both the years are upheld." 5. We have heard rival contentions and perused the material available on record. Since the department has not raised any issue challenging the admission of additional evidence, the contention of ld. DR in this context cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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