2007 (10) TMI 296

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..... unt of commission paid to one P. M. Traders was rejected. The assessee claimed that the commissions were paid for sale of wood pulp and purchase of caustic soda from National Rayon Corporation Limited. The Assessing Officer verified the assessment records of both recipients of the commission and also made enquiries through National Rayon Corporation Limited, who denied having any middle man to the business. The assessing officer accordingly disallowed the payment of commission treating it as bogus. On appeal, the Commissioner of Income-tax (Appeals) upheld disallowance  with respect to the payment to P. M. Traders. The assessee filed an appeal against the order of the Commissioner of Income-tax (Appeals) to the Income-tax Appellate Tri .....

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..... for the respondent Company, which is under liquidation, has submitted that the Tribunal has passed an order after taking note of the statement given by the person to whom the commission has been given. The Tribunal further taken into consideration of the fact that earlier the Tribunal has passed an order of remittal with a direction to the assessing officer to enquire the person i.e., P. M. Traders to whom the commission has been paid. That direction has  not been complied with by the assessing officer. On the contrary, the assessing officer has enquired some of the officers of the National Rayon Corporation, which is not a direction given by the Tribunal. He further contended that in respect of the subsequent assessment years, the Tr .....

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..... e Tax Officer, who had seen the document. In addition to that, the assessing officer has not considered the letter dated 31.12.1975 submitted by the P. M. Traders to the effect that they did receive the commission from the assessee and verified the same with the P. M. Traders. The assessing officer also failed to verify whether the partnership was for the purpose of exploiting the agreement with the assessee for the purpose of business. The Tribunal ultimately set aside all orders of the authorities below and remitted the matter to the Income-tax Officer for making fresh assessment after a proper investigation by examining the agent the P. M. Traders after giving the assessee an opportunity of being heard. 7. On remittal also, from the rec .....

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