9911796707
TMI Blog2025 (3) TMI 447X X X X Extracts X X X X X X X X Extracts X X X X ..... nly be arrived at based upon demonstrative and cogent evidences. Accordingly, we are of the view that the order of lower authority is not based upon correct understanding and appreciation of contemporary statute. The order of lower authority is therefore set aside, and we direct the Ld. AO to delete the impugned addition. Addition on account of commission income - assessee submitted that the AO held that the assessee was entitled for receipt of its commission income on accrual basis and hence he made the impugned addition - HELD THAT:- CIT(A) confirmed the addition, in view of decision of Hon'ble jurisdictional High Court dated [2011 (7) TMI 514 - DELHI HIGH COURT] in assessee's own case. Nothing has been brought on record to indicate the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee for the purposes of limited verification and decide the issue in accordance with law. Grounds of appeal raised by the assessee on this issue, is allowed for statistical purposes. Addition invoking provision of Section 40A(2)(b) - amount was incurred for the promotion of another company in which appellant subsequently became a Director - Holding that there was no business expediency u/s 37(1), declared expenditure was disallowed by AO - HELD THAT:- Nobody can claim expenses for services rendered to himself. It was argued that the assessee became the Director of the impugned company subsequently. We have noted that the case of the assessee rest upon very weak arguments. The conclusion drawn by lower authorities on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m para 4.5 of the AO's order that, even though, recording that assessee had shown expenses direct attributable to exempt income as Nil and also that interest expenses in the P & L Account have been shown as Nil, he concluded that " ...however, there can be no denying of the fact that assessee has used the available infrastructure of his firm to earn this huge exempted income. ..." 4. The comments of the Ld. AO clearly allude that the Ld. AO is making a conjecture and / or guess and that his conclusions are not based upon any bonafide satisfaction. The contemporaneous law provides for satisfaction and not any presumption. There is a huge difference between satisfaction of the officer and presumptions. Whereas, latter can be a case of the gu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dingly, the decision of Ld. CIT(A) is confirmed and all the grounds of appeal raised by the assessee are dismissed. 7. The next issue raised by the assessee is regarding an addition of Rs. 75,39,437/- on account of commission income having relation with port charges and other charges. The Ld. Counsel submitted that the lower authorities have not considered its evidences properly. During the course of present hearing, the Ld. Counsel also filed additional evidences for consideration of the matter. The Ld. DR argued that the details now provided were not before the lower authorities for their consideration. 8. We have heard rival submission in the light of material available on record. We have noted that the Ld. CIT(A) in para 22 to 24 of h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. CIT(A) confirmed the findings of the Ld. AO. 10. We have heard rival submission in the light of the material available on record. Both the parties have principally agreed that adequate evidences were not provided / available with the lower authorities for arriving at their conclusions. We are of the considered view that the Ld. AO has the first authority to examine any claim of the assessee qua determination of its correct taxable income. In this view of the matter, we draw strength from decision of Hon'ble Apex Court in the case of Tin Box Company. Accordingly, we set aside the order of lower authority and direct the Ld. AO to examine the details filed by the assessee for the purposes of limited verification and decide the issue in acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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