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TMI Blog2021 (4) TMI 910X X X X Extracts X X X X X X X X Extracts X X X X ..... ade. We, accordingly, direct the Assessing Officer to delete the addition of commission paid to 2 persons / ladies. In respect of the other 3 ladies, they may have been married, but nothing prevented them to furnish their statements by way of affidavits. Merely because the payments have been made through account payee cheques would not justify the rendition of services since no evidences have been furnished before us except for the bald statement that the ladies are now married and do not reside in Hisar. Contention of the assessee that since out of the 5 ladies, 2 have confirmed the transactions, therefore by preponderance of probabilities it can be safely presumed that the transactions with other 3 ladies were also genuine is not ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the issue afresh as per provisions of law. Accordingly, Ground No. 2 is allowed for statistical purposes. - ITA No. 4654/DEL/2016 - - - Dated:- 20-4-2021 - Shri N.K. Billaiya, Accountant Member, And Shri Sudhanshu Srivastava, Judicial Member' For the Assessee : Shri K. Sampath, Adv For the Revenue : Ms. Kirti Sankratyayan, Sr. DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER, With this appeal, the assessee has challenged the correctness of the order of the ld. CIT(A), Hisar dated 27.07.2016 pertaining to Assessment Year 2010-11. 2. The grievance of the assessee is two-fold:- a. Firstly, the assessee is aggrieved by the disallowance of ₹ 7,91,634/- on account of commission paid to 5 persons; b. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee was asked to explain the genuineness of the transactions with supporting evidences. 6. In its reply, the assessee explained that commission has been paid to ladies who had procured customers and executed sales. Copies of their bi lls were filed. It was explained that all the payments have been made through cheques and tax has been deducted at source, wherever applicable. 7. In so far as production of the ladies for examination is concerned, the assessee explained that it needs some time to contact them and know about their avai lability. 8. Reply of the assessee was considered by the Assessing Officer but did not find any favour. 9. The Assessing Officer observed that three ladies, namely, Ayushi Goyal, Sonu Goyal and Priy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Aggrieved by the aforementioned two additions, the assessee agitated the matter before the ld. CIT(A) but without any success. 16. Before us, the ld. counsel for the assessee vehemently stated that in the remand proceedings, two ladies, namely, Ayushi Goyal and Sangeeta Aggarwal were examined and they have categorically confirmed the transactions of receipt of commission @ 1.5%. it is the say of the ld. counsel for the assessee that in their respective statements, they have explained that they have introduced 25-30 customers on which they have received commission. In so far as other three ladies are concerned, the ld. counsel for the assessee stated that since they are now married, it was not possible to contact them. 17. Per contra, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es it can be safely presumed that the transactions with other 3 ladies were also genuine is not acceptable. Since no evidence has been furnished towards rendition of services by Silky Aggarwal, Sonu Goyal and Priyanka Goyal, disallowance of commission paid to them is hereby confirmed which means Ground No. 1 is partly allowed. 22. Coming to the second grievance, we find that the Assessing Officer has valued the closing stock on the basis of average of opening stock and cost price whereas it the say of the ld. counsel for the assessee that the assessee has been consistently following the cost or market price, whichever is lower method of accounting for valuation of closing stock. However, we find that the ld. CIT(A), in his order, has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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