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TMI Blog2017 (5) TMI 681X X X X Extracts X X X X X X X X Extracts X X X X ..... e. On perusal of the ledger copy, we have noticed that commission payment is duly reflected. Similarly, bank statement copies demonstrate remittance of money to M/s ShoreChem LLC and Lindsay Logue. Therefore, in our view, the additional evidences produced by the assessee before us will have a crucial bearing in deciding the issue relating to payment of commission. Therefore, we are inclined to admit the additional evidences submitted before us. However, since these evidences were not before the departmental authorities, to give a fair chance to the department to examine the evidences and verify the authenticity of assessee’s claim, we are inclined to restore the matter to the file of the AO for fresh adjudication. We make it clear, heav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) of the Income Tax Act, 1961 accepting the returned income. For the assessment year 2010-11, the assessee filed her return of income on 25.9.2010 by declaring income of ₹ 91,32,450/-. During the assessment proceedings for assessment year 2010-11, the AO noticing that assessee had claimed deduction on account of foreign agency commission amounting to ₹ 69,59,993/- called upon the assessee to furnish the details of services availed for which the commission was paid with supporting bills and invoices etc. In response to the query raised by the AO, the assessee furnished some details to show that commission was paid to M/s CPP International 11701, Still Creek Road, Charlotte NC 28273 USA. As alleged by the AO, the assessee neithe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the assessee. On the basis of information/material available on record, the AO disallowed the assessee s claim of foreign agency commission of ₹ 97,31,907/- for assessment year 2009-10 also. Being aggrieved of disallowance of foreign agency commission payment the assessee preferred appeals before the ld.CIT(A), however, the ld. CIT(A) also sustained the disallowance for both the years. 5. The ld.AR reiterating the stand taken before the authorities below submitted that the assessee had ventured into the business of exporting paper product through her proprietary concern M/s Marisa International. It was submitted, to establish itself in foreign market, the assessee has entered into an agreement with M/s ShoreChem LLC who had pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... produced. 6. The ld. DR strongly objecting to the admission of additional evidence submitted that the assessee has not shown justifiable reasons which prevented her from furnishing these evidences before the departmental authorities. The DR submitted, the assessee has not produced any evidence to establish the fact that commission was paid to M/s CPP International as claimed by her. He submitted, even relationship of Lindsay Logue with either M/s ShoreChem LLC or M/s CPP International have not been established. Under these circumstances, assessee s claim cannot be accepted. 7. We have considered the submissions of the parties and perused the materials on record. As it appears from record, assessee s claim of commission payment to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... some kind of dealing between the assessee (Proprietor of M/s Marisa International) and M/s ShoreChem LLC and its principal as well as M/s CPP International for export of paper products and stationery items to USA. Therefore, assessee s claim that M/s ShoreChem LLC has acted as an agent cannot be discarded at the threshold without examining the evidences brought on record. In this context, the additional evidences produced by the assessee assumes importance. On perusal of the ledger copy, we have noticed that commission payment is duly reflected. Similarly, bank statement copies demonstrate remittance of money to M/s ShoreChem LLC and Lindsay Logue. Therefore, in our view, the additional evidences produced by the assessee before us will have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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