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TMI Blog2018 (2) TMI 1338X X X X Extracts X X X X X X X X Extracts X X X X ..... smiss this ground of appeal of the assessee. Disallowance of expenditure on payment of commission to C. Doctor India Private Limited - Appellant stated before the lower authorities that commission has been made in consideration of the services rendered by the person in procuring the orders, without whose service, the assessee company could not have procured the orders from BHEL - Held that:- When show-cause notice was issued to the appellant, has not given any reply or explanation in this regard. Since assessee has been failed to give any reply or explanation with regard to commission payment. In our considered opinion, this expenditure was rightly disallowed by the authorities below - Assessee appeal dismissed. - I.T.A. No. 1086/AHD/20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ls) has erred in law and on facts of the case in confirming the impugned disallowance in utter disregard to the ratio of the judgments of the Supreme Court, High Court and ITAT in following judicial pronouncements: a) CIT vs. Vinay Cement Company Limited (SC) 213 CTR 268 b) CIT vs. Alom Extusions Ltd. (2009) 319 ITR 306 (SC) c) CIT vs. Lakhani Rubber Works 326 ITR 415 (P H)(2010) d) Hindustan Organics Limited (Tax Appeal No.399 of 2012) Bombay High court e) Essae Teraoka Private Limited [(2014) 266 CTR (Kar.) 246] f) Precision Products vs. ACIT (ITA No. 4/Ahd/2011)(Ahd)(2012) g) CIT v. P.M. Electronics Limited. 15 DTR 258 (Delhi High Court) h) CIT v. AIMIL Limited Ors. (2010) 35 DTR (Del) 68 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on account of such expenditure and was fully satisfied that there was no failure to make TDS. It is therefore prayed that the disallowance made by the learned AO of ₹ 6,16,371/-may please be deleted. 4. The appellant craves liberty to add/alter/amend any ground at the time of hearing of the appeal. 3. The relevant facts as culled out from the materials on record are as under:- The appellant is a company incorporated under the Companies Act, 1956 and is engaged in the business of manufacture and sale of industrial ventilator fans. In respect of its business, the appellantcompany had maintained books of accounts systematically and regularly in accordance with the provisions of Income Tax Act and Companies Act. 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... und u/s. 2(24) (x) r.w.s. 36(l)(va) 2,87,477 2. Late payment of Employees' contribution to ESIC u/s.43B 22,076 3. Disallowance u/s. 40A (3) 24,220 4. Disallowance of expenditure on hospitality 40,000 5. Disallowance of foreign travel expenses 2,01,140 6. Disallowance of expenditure on telephone bill 49,574 7. Disallowance of commission expenses 6,16,371 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 22.09.2009 4. July 2009 57151 20.08.2009 01.10.2009 5. August 2009 76977 20.09.2009 Total 287477 5.1 Since the payments of employees contribution to PF was not remitted within due date or the grace period as extended under the relevant Act. Hon ble Jurisdictional High Court had decided this kind of ground against the assessee in the matter of CIT vs. Gujarat State Road Transport Corporation; relevant Para of the same is reproduced h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with submissions, it was noticed that Assessee Company has made cash payment of ₹ 24,220/- to Shri Katilal Zaveri on 07/11/2009. Thereafter, AO issued the show-cause notice as to why expenses of ₹ 24,220/- made towards misc. expenses should not be disallowed as the same was not paid by account payee cheque or draft. Reply filed by assessee could not convince the authorities below. Hence, an amount of ₹ 24,220/- was confirmed. 6.1 We have gone through the relevant record and impugned order. We are not convinced with the reply of the assessee that payment of Kantilal Zaveri made in exceptional circumstances is not convincible as appellant has not clarified that how exceptional circumstances were there at the time of makin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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