9911796707
TMI Blog2014 (7) TMI 1112X X X X Extracts X X X X X X X X Extracts X X X X ..... commission was paid to R.Santhakumar and A.Y.Nasser. These facts were not placed before the Assessing Officer in the course of assessment proceedings and for the first time, the assessee made these submissions before the Commissioner of Income Tax (Appeals). The genuineness and the necessity of the payment of such higher brokerage commission is not established beyond doubt. - Matter remanded back. Disallowance made under section 40(a)(ia) on the brokerage commission paid - Assessing Officer held that TDS deducted on commission which is paid into Government account from Baskaran’s TAN number cannot be treated as TDS payment made from the assessee company - Held that:- TDS was deducted on behalf of the company by the Managing Director in h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... #8377; 31,00,000/-. The Assessing Officer while completing the assessment found from the profit and loss account that assessee has debited an amount of ₹ 31,00,000/- towards brokerage commission for purchasing land in Kanagapattu village. The total purchase cost of land was shown at ₹ 65,27,000/- . Since the brokerage commission was nearly about 48% of the total land cost, the assessee was required to submit details of commission paid on land dealings and proof for the payment. The assessee submitted that payment was made through bank account and TDS amount @ 5% has been deducted. However, the Assessing Officer disallowed the said commission observing that assessee has not submitted any agreement or any other document in support ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n made before the Commissioner of Income Tax (Appeals) was an afterthought. 4. Heard both sides. Perused orders of lower authorities. In the course of assessment proceedings, assessee seems to have not filed any details or basis for payment of commission on the land dealings paid to Mr. R.Santhakumar and Mr. A.Y.Nasser except submitting two self-made vouchers. The assessee also did not furnish any addresses or other particulars of R.Santhakumar and A.Y.Nasser. In the course of proceedings before the Commissioner of Income Tax (Appeals), assessee made written submission that company entered into an agreement dated 11.6.2006 with S.P.Jalajakshi and 5 others for purchase of 8.07 crores of land in Kanagapattu village for consideration of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... side the impugned order on this issue and remit the matter back to the file of the Assessing Officer and Assessing Officer shall decide the issue afresh after providing adequate opportunity to the assessee. Therefore, we allow grounds nos. 2 to 2.4 for statistical purposes as above. 5. The next issue in the appeal of the Revenue is that Commissioner of Income Tax (Appeals) erred in deleting the disallowance made under section 40(a)(ia) on the brokerage commission paid. The Assessing Officer disallowed commission payment of ₹ 31,00,000/- not only for want of details but also for reason that assessee has not deducted TDS on such payments. The submissions of the assessee that TDS was deducted by Shri M. Baskaran, Managing Director of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
