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TMI Blog2018 (2) TMI 2088X X X X Extracts X X X X X X X X Extracts X X X X ..... the view that order passed by the learned Income Tax Appellate Tribunal, Indore Bench, Indore is just and proper, in view of the law laid down by this Court in case of Commissioner of Income Tax v. Pure Pharma [ 2004 (3) TMI 31 - MADHYA PRADESH HIGH COURT] No case to interfere with impugned order passed by the learned Appellate Tribunal, as prayed for, is made out; nor any substantial question of law is arising in these appeals. X X X X Extracts X X X X X X X X Extracts X X X X ..... re, consequently a fresh assessment was for Assessment Year 2008-09 was made, disallowing the commission payments. 4. This was challenged by the assessee by filing an appeal before the Commissioner of Income Tax (Appeals). 5. The respondent / assessee is supplying goods to Government Departments like PWD and IDA on the rate approved by the Madhya Pradesh Government through Nodal Agency of a M.P. Laghu Udyog Nigam. The stand of the Department that the business related to government supplies, no commission is required, MPLUN is merely facilitators and the actual buyers are Public Works Department and Indore Development Authority, and therefore, representatives of the assessee collects the orders from these departments and also collect due f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore the AO as well as CIT (A) and incorporated in order of the ld. CIT (A) also. It was submitted that it was a commercial decision of the assessee not to recruit employees and avail services of representatives, which saved various fixed costs and was for a performance oriented were like various allowances of travelling, dearness allowance, P.F.E.S.I.C. liability and compliance thereof. It is submitted that the assessee has not debited any travelling expenses and same is given to agents, which justifies the payment of commission at higher rate. It was also submitted that the Government Agencies have confirmed the roles of their representatives in carrying out functions related to supply in their letters. The Ld. Counsel for the assessee f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted of having received the commission and service rendered by them and justification of higher rate of commission. We also note that the question framed by the AO to various Government Department like PWD and IDA was "whether they (Government Department) required the service of commission agents for making the supplies? If yes, the names and addresses of such commission agents. Therefore, the reply to this question had to be in negative as the commission agents were appointed by the assessee and not by the Government nodal agencies. We also note that the asessee is dealing in supplies of sign board etc. which required fixing site visit measurement etc. for which commission agents have rendered the service as these agents are having e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payments have been made as commission to various parties by demand drafts, wherein the identity of each of the agents was also established. It has also been found that the commission was paid exclusively for business purposes only. 4. All these are findings of fact and no substantial question of law, as is required to be formulated for deciding the appeal, arises in the same. The Tribunal has also placed reliance on a judgment of the Delhi High Court reported in CIT vs. Electric Construction Equipment Co. Ltd., [1990] 182 ITR 510, wherein the Delhi High Court dealing with identical question has already decided the matter against the present appellant-Revenue." 9. On due consideration of the aforesaid, so also the fact that in earlie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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