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TMI Blog2020 (1) TMI 829X X X X Extracts X X X X X X X X Extracts X X X X ..... m of commission eligible for deduction under Section 37 of the Act. The tribunal takes the view that the commission paid to the persons for referring the names of the customers, is allowable under Section 37 of the Act for the purpose of introducing potential customers to the assessee and the same would fall within the ambit of Service . We are in agreement with the view taken by the appellate tribunal as regards the deduction available under Section 37 of the Act. We are of the view that the proposed question cannot be termed as a substantial question of law. - R/TAX APPEAL NO. 822 of 2019 - - - Dated:- 13-1-2020 - MR. J.B. PARDIWALA AND MR. BHARGAV D. KARIA JJ. Appearance: MRS MAUNA M BHATT (174) for the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ime. However, no formal agreement has been reduced into writing to this effect. I am of the view that merely not entering into such a formal agreement cannot be a ground for disallowing commission. The Assessing Officer has further mentioned that no reply has been received from the commission agents in response to certain details called for from them by the Assessing Officer. I of the view that the fact that such commission agents did not reply to the Assessing Officer cannot come in the why of establishing the fact that such agents have rendered their services to the appellant. Also inaction at the end of the commission agents as to not replying to the Assessing Officer cannot be a ground for disallowing commission in the hands of the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. 5. The appellate tribunal took the view that the CIT (Appeals) ought not to have confirmed the disallowance only on the ground that the only service rendered by the commission agents was that of introducing the potential customers to the assessee, which would not fall within the ambit of Service so as to make the claim of commission eligible for deduction under Section 37 of the Act. The tribunal takes the view that the commission paid to the persons for referring the names of the customers, is allowable under Section 37 of the Act for the purpose of introducing potential customers to the assessee and the same would fall within the ambit of Service . 6. We are in agreement with the view taken by the appellate tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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