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TMI Blog2023 (5) TMI 469X X X X Extracts X X X X X X X X Extracts X X X X ..... to the commission given to the sub- agents of A1,86,23,609 which was adjusted against the gross commission income. Commission income was shown net of the commission given to the sub- agents which was also accepted by the revenue. Revenue did not accept the manner of showing the gross commission income after adjusting the discount given to the customers which seems to be contrary to the stand of the revenue. It is since that the revenue accepted the commission given to the sub- agents which was not shown in the books of accounts but did not believe on the discount given to the customers despite the fact, the necessary sample invoices were furnished by the assessee having passed on discount to the customers. Genuineness of the disco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under s. 143(3) of the Income Tax Act, 1961 (here-in-after referred to as the Act ) relevant to the Assessment Year 2012-2013. 2. The Revenue has raised the following grounds of appeal: 1. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 53,89,163/- (A.Y. 2012-13) Rs. 42,02,457/- (A.Y. 2013-14) made on account of commission income. 2. On the facts and circumstances, the ld. CIT(A) ought to have upheld the order of the AO. 3. It is therefore prayed that the order of the Ld. CIT(A) be set aside and that of the order of the Assessing Officer be restored to the above extent. 4. The appeal is being filed as the order of CIT(A) was composite order for A.Y. 2012-13 2013-14 where issue was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tomers amounting to Rs.53,89,163.00 against the commission income earned by it. As such, the assessee has shown commission income net of the discount given to the customers. 6. However, the AO was not satisfied with the explanation of the assessee as discussed above on the reasoning that the income to it has accrued in the form of commission on gross basis which has subsequently been surrendered to the amount of Rs.53,89,163.00 by way of discounts to the customers which is nothing but the application of income. Therefore, the AO added the same to the total income of the assessee. 7. Aggrieved assessee preferred an appeal to the learned CIT-A who deleted the addition made by the AO by observing as under: 3.6 The appellant contende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant has foregone the commission paid to direct customer. However, this contention of the AO is not correct as the AO has accepted the commission payment to the sub-agent but only disallowed the commission/discount payment to the direct buyer. It is observed that total commission was shown in the books of account but in the Profit and loss account net commission was reflected. It is also observed that the appellant could show the relevant bills and document fled related to direct commission/discount given to the direct customer. Considering the facts mentioned above the contention of the AO is not tenable and addition made by the A.O. is deleted. The grounds of appeal are allowed. 8. Being aggrieved by the order of the learne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs.1,86,23,609 which was adjusted against the gross commission income. In other words, the commission income was shown net of the commission given to the sub- agents of Rs.1,86,23,609 which was also accepted by the revenue. However, the revenue did not accept the manner of showing the gross commission income after adjusting the discount given to the customers which seems to be contrary to the stand of the revenue. It is since that the revenue accepted the commission given to the sub- agents which was not shown in the books of accounts but did not believe on the discount given to the customers despite the fact, the necessary sample invoices were furnished by the assessee having passed on discount to the customers which are available on page ..... X X X X Extracts X X X X X X X X Extracts X X X X
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