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TMI Blog2021 (2) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee. I n view of the submissions of the assessee and in the interest of substantial justice, we feel it appropriate to restore this issue back to the file of the Assessing Officer for deciding afresh in the light of the documentary evidences including, agreement with the digital platform company to whom the commission has been paid. Accordingly, the order of the learned CIT(A) is set aside and the issue in dispute is restored back to the file of the Assessing Officer for deciding afresh. Appeal of the assessee is allowed for statistical purposes. - ITA No.896/Del./2020 - - - Dated:- 18-2-2021 - Shri Bhavnesh Saini, Judicial Member And Shri O.P. Kant, Accountant Member For the Appellant : Shri Jai Sethi, CA For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat:- No justification of such high commission paid has been offered except that TDS was deducted on such payments And being disallowed expenditure was laid out or expended wholly and exclusively for the purpose of business in lieu of which sufficient evidence has been provided by the assessee. While it was quite clear fact in the case that as per the agreement with the seller of the assessee, the payments were collected from the third parties and remitted thereafter to the assessee after deduction of commission and other agreed charges. Section 37(1) states any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hether the contention of the learned AO has been justified wherein he had erred in law and on facts while making an ad-hoc estimated addition of ₹ 18, 58, 100.00./- @ 30% of total commission expenses claimed. The addition is bad in law and is liable to be cancelled. The entire addition admittedly has been made arbitrarily and on presumptions, suspicion and conjectures only. Reference of case law- Commissioner of Income Tax Versus The Lakshmi Vilas Bank Ltd. Tax Case (Appeal) No.896 of 2013 Dated - 16 April 2014 (4) TMI 827 - MADRAS HIGH COURT. Whether the order of Ld. AO is not bad in law as it has been ruled time and again by the honorable Courts and the Tribunal that any addition on ad-hoc/estimate basis cannot be without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as the 'final show cause' merely called for the assessee to 'substantiate the commission expenses'. The details and explanations furnished by the assessee through his AR were as per best of his understanding. While the onus of proving genuineness of the expenses is on the assessee, he cannot be expected to be a mind-reader and foresee exactly what would satiate the assessing authority without the AO stating his requirements expressly. Moreover, the assessee was required to establish the genuineness of the incurred expenditure, not rationalize its reasonableness as the same is not relevant for its allowance under Income Tax law. Whether the contention of the Ld. AO and the Ld. CIT (A) was justified in disallowing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eight charges etc. According to him, in view of the services rendered by the digital platform company, the commission paid was justified. He prayed that the assessee is willing to produce all documentary evidences, if one more opportunity is provided. 5. On the contrary, the learned DR relied on the order of the lower authorities. 6. We have heard the rival submissions of the parties on the issue in dispute. We find that the Assessing Officer has disallowed the part of the commission expenses paid on the ground that the assessee failed to produce the requisite evidences, including contract agreement between the parties and the assessee sought to justify the commission expenses only in view of the tax deducted at source by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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