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TMI Blog2024 (3) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... udicial pronouncements have held that the business decision of the assessee cannot be questioned by the Revenue. However, only the genuineness of the transaction needs to be verified. In the instant case, there is an agreement between the parties and the payments have been made through banking channels after deduction of tax at source. Merely because, the commission payments were huge in nature, it cannot be a ground for questioning the genuineness of the transactions in the absence of any adverse material on record. Argument of the DR that the commission have been credited only at the year-end could not be accepted because the payment of commission has been made by the assessee on regular intervals during the year, while calculation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l income of Rs. 78,72,000/- for the AY 2018-19. The case was selected for scrutiny under CASS to verify the issue Business Expenses . The Ld. AO considering the submissions made by the assessee completed the assessment u/s. 143(3) r.w.s.143(3A) and 143(3B) of the Act on 19/03/2021 by accepting the income returned. The Ld. Pr. CIT under the powers vested as per the provisions of section 263 of the Act, considered the order of the Ld. AO as erroneous and prejudicial to the interests of the Revenue. The main contention of the Ld. Pr. CIT is that the assessee has claimed an expenditure of Rs. 7.61 Crs as commission paid to M/s. Savitri Steel and Rerollings Pvt Ltd, Hyderabad. The Ld. Pr. CIT also observed that the assessee is based in Vizianag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the commission bills and GST reported in the Audit Report. The Ld. Pr. CIT also directed the Ld. AO to verify the transaction with regard to immovable properties between M/s. Maa Mahamaya Power Limited and the assessee-company. The Ld. Pr. CIT directed the Ld. AO to provide the sufficient opportunities of being heard to the assessee thereby setting aside the decision of the Ld. AO to pass suitable orders in accordance with law. Aggrieved by the order of the Ld. Pr. CIT, the assessee is in appeal before us by raising the following grounds of appeal: 1. That on the facts and in the circumstances of the case and in law, the order dated 29/03/2023 passed u/s. 263 of the Act by Pr. CIT-1, Visakhapatnam is illegal and void-ab-initio. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness decisions of the assessee and the payment of commission is in accordance with the normal business practice. Countering the arguments of the Ld. AR, the Ld. DR submitted that huge commission of Rs. 7.61 Crs cannot be justified. The Ld. DR also submitted that net profit remained the same. The Ld. DR also submitted that the commission was credited in its books of accounts only in the end of the year and hence should not be considered. The Ld. DR fully supported the order of the Ld. Pr. CIT. In response, the Ld. AR once again reiterated that the net profit of the assessee during the impugned assessment year also increased by 5.5 times as compared to the earlier assessment years. He once reiterated that the business decision of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntervals during the year, while calculation of the commission based on supplies was credited in the books of accounts on 31/3/2018. The copy of the ledger account was also produced before us by the Ld. AR. Further, with respect to the capital gains as observed in the order of the Ld. Pr. CIT passed u/s. 263, we find from the submissions of the Ld. AR that the assets form part of the books of account. Further, the Ld. AR also submitted the copy of Form 26QB and the Sale Deed before us. Further, the assessee has also provided sample confirmation letters for the sales made through the agent from the ultimate buyer. The difference in GST calculation and reported does not have any relevance in the instant case. We therefore find no merit in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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