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TMI Blog2023 (5) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... owance of Interest expenses - assessee firm paid interest at the rate of 18% - The assessee has demonstrated before the AO as well as before the CIT(A) that the advances taken from the parties were for the business purposes and it was unsecured loans and, therefore, the assessee firm paid interest at the rate of 18% due to exigencies of the business. AR pointed out that charging 12% interest to the other parties will not influence the payment of interest while the assessee obtained loans as in need/urgency these parties have given loan to the assessee and, therefore, the assessee was obligated to pay the particular rate of interest. These aspects were totally ignored by the AO and hence the appeal of the assessee is allowed. - ITA No.13/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition of Rs.12,95,116/- upheld by the NFAC CIT(A) may kindly be deleted. 3. The return of income was filed on 01.09.2015 declaring total income of Rs.7,24,057/-. The assessee is dealing in manufacturing of Cement. The case was selected for scrutiny under CASS and notice under Section 143(2) of the Income Tax Act, 1961 was issued on 05.09.2014. The Assessing Officer observed that during the previous year the assessee s firm claimed sales commission expenses of Rs.10,44,397/- and asked the details related to four persons. The assessee furnished the confirmation of payments and other details. The Assessing Officer issued summons under Section 131 of the Act to the said parties. The Assessing Officer further observed that the assessee fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der Section 131 of the Act, has not appeared as witness but the confirmation of payments and the relevant details were filed and, therefore, the same should have been taken into account by the Assessing Officer. The Ld. AR further submitted that the additional evidence filed before the CIT(A) was not taken into account and no remand report was called from the Assessing Officer. The Assessing Officer ignored the fact that the commission expenses are a normal feature of its business looking to its nature and extent of operation. The genuineness of the commission expenses was established by the fact that the payments were made by cheque, TDS was made under Section 194H and was duly accounted for in the return of income by the recipient etc. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the CIT(A) . 7. Heard both the parties and perused all the relevant material available on record. It is pertinent to note that as regards to the commission expenses the assessee has given the details of return of income of those four parties, confirmation of payments as well as the TDS details. The summons issued under Section 131 of the Act was also responded thorough letters and, therefore, the Assessing Officer cannot say that the commission expenses are not actually incurred by the assessee. The Assessing Officer has totally ignored the business expediency for which the commission has been paid to these parties and for which the assessee has given all the details. Therefore, the Assessing Officer as well as the CIT(A) was not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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