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TMI Blog2020 (3) TMI 170X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Revenue and Mr. S. Sridhar represented on behalf of the Assessee. 3. It was submitted by the learned Departmental Representative that the only issue in the Revenue's appeal was against the action of the learned CIT(A) in deleting the disallowance made by the Assessing Officer to an extent of Rs. 3,98,79,140/- claimed by the assessee as the commission paid to M/s. Divine Alloys and Power Company Limited, Raipur on account of "client referral". It was a submission that when the assessee had been questioned regarding the expenditure and to prove that the expenditure was incurred wholly and exclusively for the purpose of business, the assessee was unable to produce any agreement with the said M/s. Divine Alloys and Power Company Limited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er than saying that the assessee has got "client referral" from M/s. Divine Alloys and Power Company Limited, no other evidences has been produced. It was further a submission by the learned Departmental Representative that as the assessee had not proved the services rendered by M/s. Divine Alloys and Power Company Limited, the expenditure was not liable to be allowed. It was a prayer that the order of the learned CIT(A) was liable to be reversed. 4. The learned Departmental Representative placed reliance on the decision of the Hon'ble Supreme Court in the case of Umakant B. Agarwal reported in [2015] 57 Taxmann.com 137 as also in the decision of the Hon'ble Supreme Court in the case of Lachminarayan Madan Lal vs. Commissioner of Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... perusal of the submissions made by the assessee before the learned CIT(A) shows that the assessee was initially in the business of after sales support for hydraulic systems that were imported into India by the user from various industries. The assessee company for the purpose of producing cost effective substitutes for the imported products had put up its own product manufacturing and testing facilities. The products developed by the assessee company required approvals from design agencies and also required recommendations from various end-users. It is claimed by the assessee that the assessee had approached the said M/s. Elecon Engineering, a Public Limited Company which was in business for more than five decades, situated at Gujarat and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmission referral by M/s. Elecon Engineering. The assessee has been unable to produce any communication between M/s. Divine Alloys and Power Company Limited and the assessee, specifying the details of the transaction that the said M/s. Divine Alloys and Power Company Limited has done with M/s. Elecon Engineering which has led to the increased turnover. The submissions as made by the assessee before the learned CIT(A) clearly shows that the turnover has increased on account of the assessee's own activity of getting the business from M/s. Elecon Engineering. It is not understandable as to why on the basis of the advice of M/s. Elecon Engineering, M/s. Divine Alloys and Power Company Limited had to be brought into the picture for the payment o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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