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TMI Blog2019 (10) TMI 463X X X X Extracts X X X X X X X X Extracts X X X X ..... ans of various banking and non banking companies to different customers against commission income. Net profit has been shown at Rs. 9,60,362/- against total commission receipt of Rs. 1,54,37,816/- which comes to 6% of the gross commission receipts. It was further observed that there is a steep decline from 11% to 6% in the net profit shown by the assessee as compared to the previous assessment year. The AO noted that in this line of business net profit increases with increase in turnover, since basic establishment expenses have to be incurred even if there is low turnover. From perusal of the profit and loss account, it was found that assessee has claimed very high commission expenses and salary expenses to the tune of Rs. 63,52,632/- and R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee also could not produce these persons to whom commission has been paid. The AO also noted that burden is upon the assessee to prove commission payable are genuine and is required to produce such persons for examination. The AO also noted that even TDS return filed for fourth quarter revealed that TDS has not been paid on time. The AO after considering explanation of assessee noted that commission expenses has been booked on 31.03.2014 and have bee shown payable only at the fag end of the next financial year. The perusal of the addresses shows most of them belong to the same family and in some of the cases interest has been paid instead of commission. The assessee did not produce any commission agreement etc. despite giving opportun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s considering the steep decline in profit from 11% in the previous year to 6% during the year and AO observed that commission has been paid to some person covered by 40A(2)(b) and expenses were found to be payable as on 31.03.2014. In respect of commission documents furnished by the appellant during assessment proceedings as well as during appellate proceedings did not prove the services rendered by seven persons. Merely the deduction of TDS does not justify that expenditure has not incurred wholly and exclusively for business purpose. Similarly in the case of salary appellant failed to furnish details of employees, their complete address and their assessment particulars by specific document such as attendance register or receipts. Besides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ear and Rs. 2 lakhs as TDS on the same which was paid belatedly. The assessee could not produce those persons to whom commission was shown payable at the end of the year. The assessee failed to produce any evidence as to what services those commission agents have rendered for the business of the assessee. The amounts have been paid to them subsequently. These persons are related persons with the assessee and even one of the person is the husband of assessee. Since the assessee failed to produce relevant evidences and also failed to produce such persons for examination before the AO, therefore, the onus upon assessee to prove genuine commission was payable have not been discharged by the assessee. Merely because assessee dedycted TDS would ..... X X X X Extracts X X X X X X X X Extracts X X X X
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