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TMI Blog2018 (4) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... held. Appeal of the Revenue is dismissed. - ITA. No. 182/RJT/2014 - - - Dated:- 10-4-2018 - Shri Rajpal Yadav, Judicial Member And Shri Amarjit Singh, Accountant Member Revenue by : Smt.Usha N. Shrote, Sr.DR Assessee by : Shri M.J. Ranpura, AR ORDER Per Rajpal Yadav, Judicial Member Revenue is in appeal before the Tribunal against order of ld.CIT(A)-IV Rajkot dated 6.12.2013 passed for the Asstt.Year 2008-09. 2. Before adverting to the grounds of appeal taken by the Revenue, we would like to prefer to make discussion briefly from the assessment order. Assessee is a broker and commission agent dealing in shares and securities. He has filed his return of income 29.9.2008 declaring total income at ₹ 2,23,500/- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stify the huge difference in commission rates and also the reason for not claiming/showing this expenditure in either Rol. or Audit Report. Therefore, the same can't be allowed u/s. 69C. Regarding (b). service tax paid, the assessee can't be allowed this expenditure because the same has not been claimed either in Return of Income or shown in Audit Report for the relevant A.Y. Moreover, the assessee has also not filed any revised return of income in the prescribed time limit as per IT Act, 1961. Hence, it can't be allowed u/s. 69C. Regarding (c). commission paid to clients, the same can't be allowed as it has neither be claimed in Return of Income nor shown in Audit Report for the relevant A.Y. Regarding (d) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concerned, the appellant has produced list of payees showing their PAN, amount of commission paid, tax deducted at source from the commission, their returns of income, etc. As per the Income tax Act, any business expenditure incurred for the purpose of earning business income is totally and fully allowable. The AO made the disallowance of commission income because (a) the same were not ' claimed and (b) there is no synergy between the commission receipt and commission expenditure in percentage terms. So far as claim of expenditure in, the books of accounts are concerned, since the commission income offered is net of commission expenditure, there is no way that the appellant can claim it again. Secondly, the commission expenditure is ful ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 21,373 on account of commission paid to agents is hereby deleted. The AO had disallowed service tax payment of ₹ 7,66,553 and commission paid to clients at ₹ 14,833 on the sole ground that the appellant had not claimed the same in his books of accounts. However, as discussed supra, since the appellant had offered net income, after deducting all expenditure and as the payment of service tax and commission to clients, were duly supported by documentary evidence and as the AO has not brought anything on record to prove that there is infringement of provisions of section 37 of the IT Act, the disallowance fails to stand. Therefore, these two additions are also deleted. 6.4 The assessing officer has disallowed share tradi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... squared off by the appellant, which resulted into loss. This ground fails to survive because, there is no evidence in support of this argument. Secondly, while subscribing a client, some minimum exposure margin is always taken to take care of the contingencies so described by the appellant. It is not that any person can come and trade for shares and when they earn profit claim such profits and when they incur loss, shed their responsibilities. Therefore, this ground has no credence. In view of the above, the claim of loss to the extent of ₹ 5,91,594/- out of ₹ 14,92,839/- is not allowed and the disallowance made to this extent is upheld. The appellant gets a relief of ₹ 9,01,245 on this count. 5. If we weigh the fin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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