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TMI Blog2015 (12) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... ment in earlier years as well as in the subsequent year. In our opinion, we are not concerned with the any other year which are not before us. In our opinion, if the department has accepted in earlier year, it was a mistake and there is no merit in continuing the same mistake in the assessment year under consideration. The payment of commission accrued only on realization of sale value and it is to be allowed when the realization of sale value which is in compliance with the agreement cited supra and disallowance is based on the above agreement brought on record by the authorities and hence, we do not find any infirmity in the orders of the authorities below, which is confirmed. No reasons warranting interference with the order passed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , a query was raised why the amount of ₹ 45,26,029/- which is the actual remittance made during the period towards commission should not be the actual debit and not ₹ 77,32,218/-. In answer to the query, the assessee stated that as per accrual system of accounting, the commission had become due and hence the debit of ₹ 77,32,218/- and further that the commission is based on sales and becomes due only as and when the proceedings are completed. 2. According to the assessee, the actual remittance alone should be debited in the Profit Loss Account, since that is the amount accrued and due on account of commission, and that the commission is solely dependent on actual sale or export of goods. Therefore, the assessee conten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter evaluating the entire facts and circumstances of the case has confirmed the order of the lower authority, holding that there is no infirmity in the order passed by the authorities below and held as follows in the last paragraph of the order: We have heard the parties and perused the relevant material on record. We have also gone carefully gone through the order of the authorities below and also the agreement entered between the assessee and KSB Singapore (Asia-Pacific) Pvt. Ltd., Singapore. Clause 4 of the agreement reads as under: 4 For all export orders materializing during the period of this contract, the company will pay KSB Singapore (Asia Pacific) a commission at the rate not exceeding 12.5% (Twelve and a half percent) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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