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TMI Blog2017 (7) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... aining the manner of execution also coupled with the above facts as found by the AO that no evidence of services rendered by the agents was filed by the assessee, the agents had no knowledge of the product sold, had no links with the purchasers, had claimed receipt of commission only for introducing the buyers and the fact that most of the buyers were known to the assessee and did not require any introduction, seals the matter against the assessee. Thus we uphold the order of the CIT(A) confirming the disallowance of commission expenses - Decided against assessee. - ITA No.733/Chd/2012, And ITA No.443/Chd/2015 - - - Dated:- 12-1-2017 - SHRI BHAVNESH SAINI, JUDICIAL MEMBER, AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER For The Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss machines. The assessee was asked to justify the expenses. On scrutiny of the details and evidences filed the Assessing Officer found that the assessee had paid commission to 15 persons. The Assessing Officer issued summons u/s 131 to the agents in response to which 11 appeared and their statements were recorded. From the statement recorded the Assessing Officer concluded that the commission paid was bogus since none of the persons had any experience in the line of selling machines, had no knowledge of power press machines, did not know the purchasing parties, got heavy commission for no services except for one time introducing them to the assessee, there was no written agreement and all the purchasing parties were reputed who had no reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as that of the Ld. CIT (Appeals). 7. We have heard the learned representatives of both the parties, perused the findings of the authorities below and considered the material available on record. 8. We find no infirmity in the order of the Ld. CIT (Appeals) confirming the disallowance made on account of commission. The relevant findings of the CIT (Appeals) upholding the disallowance at para 3.3 of the order is as under: 3.3 I have carefully perused the written submission and the assessment order. The AO has held that the commission expenses claimed were bogus and that no services were rendered by the persons to whom commission have been paid. In this regard, the following facts may be mentioned once again:- i) The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erely claimed that the AO was biased and that he pressurized the persons whose statements were recorded. Perusal of the assessment records shows that the AO has recorded the detailed statements u/s 131 in order to establish the genuineness or otherwise of the commission expenses. The claim of the appellant that the AO was biased is totally incorrect. The detailed statements clearly establish that commission payments were a sham arrangement to reduce income of appellant. The appellant has also submitted that all the documentary evidence submitted by it before the AO were ignored. This statement is also factually incorrect. The AO has mentioned about all the details submitted by the appellant and given detailed justification as to why t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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