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TMI Blog2018 (8) TMI 1548X X X X Extracts X X X X X X X X Extracts X X X X ..... ective returns and master data of Registrar of Companies website showing these companies in ‘active’ category. The payments in commission are made on a monthly/periodical basis based on the clearing of the bills of the assessee pursuant to periodical invoices raised by those commission agents clearly defining the services rendered by them and linking the sales made through them for and on behalf of the assessee. All these payments are made by a/c payee cheques. There is absolutely no iota of evidence to suspect the genuineness of these transactions and there is no case made out by the revenue before us to sustain the order of the ld. AO. - Decided against revenue - I. T. A No. 1805/Kol/2016 - - - Dated:- 24-8-2018 - Shri S. S. Godara, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nature of Expenses Amount of the Expenses TDS made Sugam Vinimay Pvt. Ltd. , Ananta Bhavan, 94, Vivekanand Nagar, P. O. Podrah, Howrah-711109. Commissions 1, 02, 30, 000/- Nil Snehsil Marketing Pvt. Ltd. , Ananta Bhavan, 94, Vivekanand Nagar, P. O. Podrah, Howrah-711109. Commissions 15, 50, 000/- Nil Silverpoint Infratech Pvt. Ltd. , Ananta Bhavan, 94, Vivekanand Nagar, P. O. Podrah, Howrah-711109. Commissions 3, 72, 000/- Nil Total 1, 21 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of those parties are proved beyond doubt. The payments of commission were made by the assessee to those parties for procurement of orders from different locations of the Eastern Coal Fields Ltd and for collecting the payments from such locations. It was submitted that each of the above parties have raised their periodical bills for services rendered and their entitlement of commission, based on supplies made to Eastern Coal Fields Ltd. each month. All the aforesaid parties have duly collected service tax on their monthly/periodical commission entitlements as per their invoices raised. The payments of commission was also made on a monthly basis as per the clearing of the bills raised by the assessee. No tax was deducted at source on commi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and normal course of business and warranted by commercial expediency. 5. The ld. CIT(A) appreciated the aforesaid facts and contentions of the assessee and deleted the disallowance of ₹ 1, 21, 52, 000/- towards commission. Aggrieved the revenue is in appeal before us. 6. We have heard the rival submissions. At the outset, we find that the ld. AO had erred in stating that the assessee had not filed any reply in response to show cause notice dated 09. 02. 2015 wherein he proposed to disallow the commission expenditure treating the same as bogus. In this regard, we find that the ld. AR had filed a copy of letter dated 11. 02. 2015 filed before the ld. AO in Tapal. The said letter clearly reflects the acknowledgement given by the AS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ervices by the concerned commission agents to the assessee by way of procuring orders from the customers and securing the payments from them. There is no dispute that the commission bills are raised by these agents periodically and that the payments are made to them together with service tax portion thereon by account payee cheques. It is not in dispute that all the three commission agents had duly furnished a certificate issued by DCIT(TDS) u/s 197(1) of the Act as under: Sugam Vinimay Pvt. Ltd. certificate dated 17. 08. 2011 Snehsil Marketing Pvt. Ltd. certificate dated 16. 08. 2011 Silverpoint Infratech Pvt. Ltd. certificate dat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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