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TMI Blog2016 (1) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... aterials with reference to the contentions raised on both sides. Having regard to the limited scope of remand, the Assessing Officer shall pass orders as expeditiously as possible. - T. C. A. No. 483 of 2008 - - - Dated:- 7-12-2015 - M Jaichandren And S Vimala, JJ. For the Appellant : Mr. M Swaminathan For the Respondent : Mr. P Senthil Kumar JUDGMENT ( Judgment of the Court was delivered by S. Vimala, J. ) This Tax Case Appeal has been filed by the Revenue, as against the order of the Income Tax Appellate Tribunal, 'C' Bench, Chennai, dated 24.08.2007, made in I.T.A.No.740/Mds/2007. Brief facts:- 2. The assessee is a business concern dealing in chemicals. In respect of the assessment year 2003-2004, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see preferred appeal before the Income Tax Appellate Tribunal and the Tribunal has held that the Commission paid to the corporate entities, through banking channel, whose Permanent Account Numbers (PANs) have been furnished to the Assessing Officer cannot be doubted and disallowed without proper enquiries. Aggrieved over this order, the Department has preferred this Appeal, raising the following substantial question of law:- Whether on the facts and in the cricumstances of the case, the Income Tax Appellate Tribunal was right in law in justifying the commission paid to the tune of ₹ 67,27,747/- to its Commission Agents, even though the assessee could not produce any true and correct particulars of the Commission Agents? 3. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal expenditure. 4. It is the contention of the learned counsel for the Assessee / respondent that the assessee met with business expenditure to the extent of ₹ 67,27,747/- towards payment of commission of which it is entitled to deduction, as per the provisions of Section 37 of the Act. But the contention of the Revenue is that, there is no proof to show that the expenditure incurred was wholly and exclusively for the purpose of business and therefore, the assessee is not entitled to deduction. 5. Therefore, the issue to be decided is, whether the assessee is entitled to the benefit of commission, purportedly paid by the assessee to its commission agents. 6. It is an admitted fact that the deduction towards commission was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Corporation Limited), whereunder it has been held as follows:- In this case the assessee had given the names and addresses of the alleged creditors. It was in the knowledge of the Revenue that the said creditors were income-tax assessees. Their index number was in the file of the Revenue. The Revenue, apart from issuing notices under section 131 at the instance of the assessee, did not pursue the matter further. The Revenue did not examine the source of income of the said alleged creditors to find out whether they were credit-worthy or were such who could advance the alleged loans. There was no effort made to pursue the so called alleged creditors. In those circumstances, the assessee could not do any further. In the premises, if the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of assessee's business. In support of the smae, the decision reported in (2015) 56 Taxman.com 351 (SC) (Premier Breweries Limited v. Commissioner of Income-Tax, Cochin) is relied upon, wereunder the decision in Lachminarayan Madan Lal vs. Commissioner of Income Tax West Bengal, 1972 (86) ITR 439 was referred to, which runs thus:- The mere existence of an agreement between the assessee and its selling agents or payment of certain amounts as commission, assuming there was such payment, does not bind the Income Tax Officer to hold that the payment was made exclusively and wholly for the purpose of the assessee's business. Although there might be such an agreement in existence and the payments might have been made. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gents, when PANs have been made available and if need be, the Revenue can invoke the powers under Section 131 of the Act. 10.3.1. The powers of the Income-Tax Authorities are as follows:- Powers of the Income-Tax authorities.- For the purpose of enabling the Assessing Officer, Deputy Commissioner (Appeals), Deputy Commissioner, Commissioner (Appeals) and Chief Commissioner or Commissioner to discharge their functions so as to arrive at the correct income or loss of an assessee it has been enacted in Section 131 (1) of the Act that all those officers shall have the same powers as are vested in a civil court in respect of- (a) discovery and inspection; (b) enforcing the attendance of any person, including a bank officer; ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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