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TMI Blog2018 (11) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... AO on account of interest paid on unsecured loans. The ld. CIT(A) failed to appreciate the fact that the said loan was utilized for investment in partnership firm from which the assessee earned remuneration and interest on capital. 2. Under the facts and circumstances of the case, the ld. Commissioner of Income Tax (Appeal), Ajmer has erred in confirming the addition of Rs. 3,12,000/- made by the AO on account of payment of commission to Shri Ashish Mantri, son of the appellant." 2. At the outset, it is noted that the appeal was earlier dismissed by the Co-ordinate Bench vide its order dated 19.12.2017 for non-prosecution and subsequently, the Co-ordinate Bench vide its order dated 13.04.2018 has recalled the earlier order. Hence, the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ership firm. Accordingly, he disallowed the said claim of the assessee. Further, during the course of appellate proceedings before the ld. CIT(A), he has again stated that the assessee could not substantiate his argument that interest was paid in respect of loan utilized for making investment in the partnership firm and no fund flow statement was filed which shows interest bearing fund, if any were utilized for making investment in the partnership firm. In absence of any nexus being established by the assessee in support of his contention that the borrowed funds have been utilized for making investment in the partnership fund, we accordingly do not see any infirmity in the order of the lower authorities. Further, we have gone through the de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee has given appropriate details in the form of account confirmation, affidavit, journal voucher, financial statements and passport of Mr. Ashish Mantri to show his identity. Thus the assessee has discharged his onus and merely non-presence of the party would not lead to an interpretation that the transaction is non-genuine. Evidence has also been given regarding Mr. Ashish Mantr's visit to China during the relevant period. Though the visa is for Tourist purpose, however, he went for business purpose only which is a regular practice. 7. In this regard, we referred to the findings of the Assessing Officer which are contained at para 4.2 which is reproduced as under:- "4.2 Disallowance of Other expenses:- Against the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ort matters. That after completion of export transaction assessee has paid the commission for Rs. 312000/- to Mr. Ashish Mantri for the export transaction. 4. That Ashish Mantri is existing assessee of income Tax and he has shown the income from commission in his return of income which was received from assessee, copy of return of income, Balance sheet of Ashish Mantri for the assessment year 2013-14 is enclosed herewith. Therefore, it is proved from the above evidence, details, and documents that commission which was paid to Ashish mantra is genuine and justified." There was a contradiction in the nature of work for which commission was granted, as M/s Tileco Private Limited confirmed the fact that commission was paid to Shri Ashok M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs or appellate proceedings, the assessee has not been able to show that Shri Ashish Mantri, the son of the appellant has rendered any services for getting the commission of Rs. 3,12,00/-. The AO requested the appellant to produce Shri Ashish Mantri for examination, but the appellant could not produce Shri Ashish Mantri for examination, but the appellant could not produce Shri Ashish Mantri before the AO. The reason for disallowance in detail has been discussed by the AO at page 7 and 8 of the assessment order. In view of the facts discussed by the AO in the assessment order. I am of the considered view that the AO has rightly disallowed the commission expenses of Rs. 3,12,000/- paid by the appellant to Shri Ashish Mantri the son of the app ..... X X X X Extracts X X X X X X X X Extracts X X X X
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