9911796707
TMI Blog1980 (10) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... eleting the disallowance of Rs. 20,000 made by the ITO on account of a provision in the commission account. The ITO while proceedings the assessment, found that the assessee had made a provision of Rs. 20,000 under the head 'commission account'. He, therefore, asked the assessee to explain this provision. According to him, the assessee failed to do so and in the absence of any factual basis and in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arty on 31st March, 1976, the commission was not paid to the agent through whom the booking was done. It was pleaded that in the past also the appellant was making provision for commission payable and for the asst. yr. 1974-75 a provision of Rs. 5,000 was made and since the commission paid during the asst. yr. 1975-76 was of lesser amount than this the balance amount of Rs. 1057.64 was transferred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provision and, therefore, it cannot be called an ascertained liability either contractual or statutory and as such could not be allowed. These submissions were, however, opposed by the ld., counsel for the assessee who submitted that the assessee had sold goods worth Rs. 3,95,966 to M/s. Prabal Trading Company, Bombay and had to pay commission to M/s. Sandeep Sales Corporation who were the commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erference in the order of the AAC. It is not controverted by the sales to M/s. Prabal Trading Company, Bombay to the extent of Rs. 3,95,966 and these sales were effected through Sandeep Sales Corporation. M/s. Sandeep Sales Corporation are commission agents and as such entitled to commission on the sales effected by the assessee to the Bombay party. The commission on normal percentage allowed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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