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TMI Blog2019 (7) TMI 702X X X X Extracts X X X X X X X X Extracts X X X X ..... Tata, Vodafone, Reliance and power cable, CESC and others by the assessee as first party and the second party therein i.e. M/s. Wise Agencies Pvt.Ltd. shall arrange permission and to help and resolve any problem arising in the site work. The first party i.e. the assessee agreed to pay 5% as commission for providing the services by the second party. Therefore, it is clear that there was an agreement between the assessee with M/s. Wise Agencies Pvt.Ltd. for which the assessee paid commission @ 5 %. We find that both the authorities did not examine and discuss the evidence filed by the assessee. Therefore, the finding of both the authorities below that the transactions between the assessee and M/s. Wise Agencies Pvt.Ltd. are bogus and not genuine which is in our opinion contrary to the evidence brought on record by the assessee. In the case of CIT vs M/s. Inbuilt Merchant Pvt. Ltd. [ 2014 (3) TMI 1107 - CALCUTTA HIGH COURT] of Hon ble High Court of Calcutta wherein we find the AO held the transactions were not genuine as there was no reply in some cases and found no existence of such agents during the verification proceedings. The Hon ble High Court of Calcutta held that no ad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntire commission agents were traceable. In this case the facts of the case are different and it is seen that this So called commission agent M/s Wise Agency Pvt. Ltd is not traceable from various authorities i.e. Bank, Central Exose and by Income Tax too. In this case the assessing officer of M/s Wire agency i.e.ITO,Wd-7(2), Kolkata, itself has examined the issue and found that the so called agent is entry provider, nonexistent, untraceable and bogus, On being question to the appellant to prove the services genuine, by the AO, the appellant failed to do so. Here two facts are corroborated (i). The AO of M/s Wire agency found the concern as entry provider bogus and non extant, ii) The assessing officer of the appellant gave opportunity to produce and prove the services rendered which appellant failed to do so. The appellant also failed to show that the person M/s Wise Agency has shown concerned commission in his income. It is also not the case that this commission has been paid to the agent and the same has been allowed in past to the same person. It was also found by the AO that the concerned M/s Wise Agency was indulged in providing bogus entries to various concern. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . But, however, the fact remains admitted that the assessee filed all details relating to the transactions that have taken place with M/s. Wise Agencies Pvt.Ltd. before the AO. Even the resolution passed by the Directors to strike off its name off register before the Registrar of companies. Form FTE placed at pages 52 to 54 an application seeking striking off was filed on 02.11.2011 and it is clearly shows that was well before date of assessment order. It is also not disputed that all the payments were paid through banking channel i.e. Account Payee cheques by deducting TDS evidence of which is placed at pages 61, 62 55 of paper book. Supporting the agreement between the assessee and M/s. Wise Agencies Pvt.Ltd. was fled which is at page No.56 of Paper Book clearly shows that an agreement entered in respect of telecom companies namely Airtel, Aircel, Tata, Vodafone, Reliance and power cable, CESC and others by the assessee as first party and the second party therein i.e. M/s. Wise Agencies Pvt.Ltd. shall arrange permission and to help and resolve any problem arising in the site work. The first party i.e. the assessee agreed to pay 5% as commission for providing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that recipient did not reply in some cases or they were not found at the address furnished by the assessee does not in the least prove the fact that they were non existent or that the payments shown to have been made by the assessee were imaginary. With the advancement of technology, it has become possible to sell goods throughout the country through the internet. For that purpose, agents are required throughout the country. The mechanism in that regard has been disclosed by the assessee and has been recorded in the order of the CIT (Appeals). For the purpose of carrying on its business, the assessee has to recruit the agents. It may not be possible for the assessee to know them personally. Whatever address was furnished to the assessee, has been disclosed to the Income-tax Department. Payments were admittedly made by cheque after deduction of tax. The tax deducted as source has duly been deposited. The judgment in the case of CIT vs. Precision Finance Pvt. Ltd. reported in 208 ITR 465 relied upon by Mr. Bhowmick does not really assist him. The aforesaid judgment is an authority for the proposition that mere payment by account payee cheque cannot establish that the transaction was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the said proposition we rely on the Judgment of the Hon'ble Kolkata High Court in the case of Commissioner of Income Tax Vs Inbuilt Merchants Pvt Ltd in ITAT No. 225 of 2013, GA No. 2825 of 2013 wherein it was taken note by the Hon'ble High Court that with the advancement of the Technology it has become possible to sell goods throughout the country through Internet and for this purpose agents are required throughout the country and so the assessee has to recruit the agents. The Hon'ble High Court took note that it may not be possible for the assessee in such cases to know them personally. And since the assessee has furnished the address of the agents which they have provided to the assessee to the AO and payments were admittedly made by cheque after deduction of Tax, the Hon'ble High Court after taking note that apart from the payment by cheque there were other evidence like (a) Books of account maintained by the assessee in ordinary course of business. (b )Deduction of tax at source.(c )Deposit of the money deducted at source (d)Particulars of the recipient were duly disclosed. Accordingly, the Hon'ble Court confirmed the action of Tribunal allowing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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