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TMI Blog2022 (10) TMI 1090X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) for AY 2006- 07 while dealing with the other issue of disallowance of carriage outward expenses. We do not find any justification in placing reliance on one issue and not on the other issue by the Ld. CIT(A) while dealing with identical issues. Considering this, we restrict the disallowance of commission in the present case before us to 50% of the claim of Rs.13,18,500/- and delete the balance. The assessee gets a relief accordingly. Disallowance of 70% made on expenses towards carriage outward for the reasons that proper supporting evidence for the expenses was not produced - HELD THAT:- We note that this issue was also dealt with by the then Ld. CIT(A)-XXXIV, Kolkata in the order in assessee s own case wherein the disallowanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n made by the Ld. AO and confirmed by the Ld. CIT(A) towards bogus purchases. Appeals of assessee are partly allowed. - I.T.A. Nos. 2026 & 2027/Kol/2016 - - - Dated:- 18-5-2022 - Shri Sanjay Garg, Judicial Member And Shri Girish Agrawal, Accountant Member For the Appellant: None For the Respondent: Smt. Ranu Biswas, Addl. CIT, DR ORDER Per Girish Agrawal, Accountant Member : Both these appeals preferred by the assessee against the separate orders of Ld. CIT(A)-6, Kolkata dated 05.05.2016 for AY 2010-11 vide appeal No. 448/CIT(A)- 6/Kol/13-14 and dated 06.05.2016 for AY 2011-12 vide appeal No. 393/CIT(A)- 6/Kol/14-15 against the assessment orders passed by ITO, Ward-55(1), Kolkata u/s. 143(3) of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 57,283/- towards bogus purchases vide ground no. D in ITA No. 2027/Kol/2016 for Ay 2011- 12. For the sake of brevity and convenience, both the appeals are disposed of with the common order as hereunder. 5. Brief facts as culled out from the records are that the assessee is a wholesaler of medicines, who runs a proprietorship firm under the name and style of M/s. Roy Agency. For the assessment year 2010-11, return was filed by declaring an income of Rs.6,01,916/-. Assessment was completed u/s. 143(3) of the Act at a total income of Rs.24,78,963/-. The assessee had claimed total commission payment of Rs.13,18,500/- to ten persons for which the Ld. AO found on his examination that the assessee could have paid maximum commission of Rs.5,88 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in respect of commission for Rs.13,88,500/-, it is noted that commission was paid to ten individuals who procured orders and medicines from the retail medicine shops for the assessee, which was paid on weekly basis. The said commission has been paid to ten different persons @ 1% or lesser on the orders procured by them. For this, ten persons i.e. the recipients of commission were produced by the assessee before the Ld. AO who were examined and their depositions were duly recorded. In the course of assessment proceedings as noted in the impugned assessment order, the assessee had claimed in his submissions that the commission debited in the P L Account was actually incentive paid in lieu of salary. It was due to use of wrong head/wrong nomen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oper supporting evidence for the expenses was not produced, we note that this issue was also dealt with by the then Ld. CIT(A)-XXXIV, Kolkata in the order (supra) in assessee s own case wherein the disallowance was restricted to 50% of the carriage outward expenses as against 70%. Following the same, we give part relief to the assessee on this issue by restricting the disallowance to 50% instead of 70% made by the Ld. AO. The assessee gets part relief accordingly. 7.3. Similar findings will apply in respect of ITA No. 2027/Kol/2016 for AY 2011- 12 on the above two issues. 7.4. On the third issue in respect of bogus purchases of Rs.4,57,283/- vide ground no. (D) for AY 2011-12, we note that purchases were made by the assessee from thre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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