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TMI Blog2016 (6) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... doubted by the Authorities Below. We further find that assessee’s claim of commission expense on the basis of bills raised by commission agents for the value of orders arranged by them consistently and these were allowed in the past years also. We also find that assessee having the arrangement with the commission agent for procuring the orders from the Electricity Boards and once the order has been arranged then the commission agent is entitled for the commission on the value of such order arranged by him. In this point of argument, Ld. DR has not brought anything on record to controvert the argument raised by Ld. AR. - Decided in favour of assessee. Disallowance of deduction u/s 80G of the Act on account of donation - Held that:- Ld. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he action of Assessing Officer by disallowing the commission expense of ₹ 24,37,169/- on account of sales not made during the year. For this, assessee has raised following effective ground:- (1) That the Commissioner of Income Tax (Appeals)-XX has erred, both on the facts and circumstances of the case and in law in confirming the addition of ₹ 24,37,169/- of claim of Commission. 3. Facts in brief are that assessee is a partnership firm and engaged in the manufacturing business of electric transformer and similar other products used by various Electricity Boards and their Distribution units. During the year, assessee has claimed expense of ₹ 47,47,106/- in the form of commission expense paid by assessee for getti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A) assessee came in second appeal before us. 5. Before us Ld. AR filed paper book having pages 1 to 75 and submitted that assessee is following to recognize the commission expense on the basis of orders procured by commission agent and not on the basis of actual sale booked in its books of account. This payment to the commission agent was made after deducting TDS. The commission agents used to raise the bills immediately after procuring the order in the name of assessee which are placed on pages 25 to 62 of the Paper Book and all the commissions were booked after deducting TDS and the challans for the payments of TDS were placed from pages 64 to 72 of the paper book. Finally, Ld. AR prayed that assessee has been claiming such commission ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on expense on the basis of bills raised by commission agents for the value of orders arranged by them consistently and these were allowed in the past years also. We also find that assessee having the arrangement with the commission agent for procuring the orders from the Electricity Boards and once the order has been arranged then the commission agent is entitled for the commission on the value of such order arranged by him. In this point of argument, Ld. DR has not brought anything on record to controvert the argument raised by Ld. AR. Therefore, we are inclined to reverse the orders of Authorities Below and this ground of assessee s appeal is allowed. 7. Coming to next ground raised by assessee is that Ld. CIT(A) erred in confirming th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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