Surender Kumar Garg, Delhi V. ITO, New Delhi

ITA 2426/DEL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 4865 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 24-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T VASANTHAN
• Assessee Lawyers: RAJAT JAIN C AS
• Section: 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, VICE PRESIDENT ITA NO.2426/DEL/2017 ASSESSMENT YEAR : 2012-13 SURENDER KUMAR GARG, PROP. M/S VISHU RICE TRADERS, 2640/4, NAYA BAZAR, DELHI. PAN: AAGPK4193C ] VS. ITO, WARD-47(1), NEW DELHI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI AKSHAT JAIN & SHRI RAJAT JAIN, CAS DEPARTMENT BY : SHRI T. VASANTHAN, SR. DR DATE OF HEARING : 30.08.2017 DATE OF PRONOUNCEMENT : 30.08.2017 ORDER THIS APPEAL FILED BY THE ASSESSEE ARISES OUT OF TH E ORDER PASSED BY THE CIT(A) ON 01.02.2017 IN RELATION TO THE ASSESSM ENT YEAR 2012-13. ITA NO.2426/DEL/2017 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF DISALLOWANCE OF RS.33,93,133/-, BEING COMMISSION P AID BY THE ASSESSEE TO BROKERS. THE FACTUAL MATRIX IS THAT THE ASSESSE E IS A PROPRIETOR OF M/S VISHNU RICE TRADERS, ENGAGED IN THE BUSINESS OF F OOD GRAINS. ON BEING CALLED UPON TO FURNISH THE DETAILS OF COMMISSION OF RS.33.93 LAC, THE ASSESSEE FILED A LIST CONTAINING THE NAMES AND ADDR ESSES OF THE PERSONS TO WHOM COMMISSION WAS PAID, THEIR PANS ALONG WITH THE AMOUNT OF COMMISSION PAID AND THE TAX DEDUCTED AT SOURCE THER EON. THE ASSESSEE CONTENDED THAT IT PURCHASED GOODS AMOUNTING TO RS.6 0.94 CRORE WHICH WERE SOLD FOR RS.61.53 CRORE. THE ASSESSEE SUBMITTE D THAT IT WAS DOING BUSINESS IN NAYA BAZAR WHERE ALL THE SALES AND PURC HASES WERE COMPLETED THROUGH BROKERS. COPIES OF A FEW BILLS I NDICATING THE NAMES OF BROKERS WERE ALSO PLACED BEFORE THE ASSESSING OF FICER. NOT CONVINCED, THE ASSESSING OFFICER MADE ADDITION OF R S.33.93 LAC ON THE GROUND THAT THE ASSESSEE COULD NOT EVEN IDENTITY AL L THE PERSONS TO WHOM SUCH COMMISSION WAS PAID. THE LD. CIT(A) CONFIRMED THE SAME. THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. ITA NO.2426/DEL/2017 3 3. AFTER CONSIDERING THE RIVAL SUBMISSIONS AND PERU SING THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT THE ASSESSE E FURNISHED BEFORE THE ASSESSING OFFICER COMPLETE DETAILS OF THE PERSONS T O WHOM THE COMMISSION WAS PAID ALONG WITH THEIR PANS AND THE A MOUNT OF TDS THEREON. THE LD. CIT(A) REQUESTED THE ASSESSING OF FICER TO SUBMIT A REMAND REPORT. IN THE REMAND PROCEEDINGS, THE ASSES SING OFFICER ISSUED NOTICES U/S 133(6) TO 25 PARTIES RANDOMLY OUT OF 80 PARTIES TO WHOM THE ASSESSEE CLAIMED TO HAVE PAID COMMISSION. ALL SUCH NOTICES WERE SERVED AND CONFIRMATIONS WERE FILED BY THE PAYEES ADMITTIN G TO HAVE RECEIVED THE COMMISSION. THERE IS NO CONTRARY MATERIAL BRING ING THE CLAIM OF COMMISSION UNDER THE SHADOW OF DOUBT. IT IS FURTHER RELEVANT TO NOTE THAT COMMISSION OF RS.44,60,949/- WAS PAID BY THE ASSESS EE IN THE IMMEDIATELY SUCCEEDING YEAR AGAINST PURCHASE OF RS. 97.90 CRORE. SUCH COMMISSION HAS BEEN ALLOWED BY THE ASSESSING OFFICE R WHILE FRAMING ASSESSMENT U/S 143(3). A COPY OF THE ASSESSMENT OR DER HAS BEEN PLACED ON RECORD. IN VIEW OF THE FOREGOING DISCUSSION, I AM SATISFIED THAT THE ASSESSEE SUCCESSFULLY PROVED THE GENUINENESS OF THE COMMISSION PAYMENT TO VARIOUS BROKERS. ACCORDINGLY, THE ADDIT ION IS DELETED. ITA NO.2426/DEL/2017 4 4. IN THE RESULT, THE APPEAL IS ALLOWED. THE DECISION PRONOUNCED IN THE OPEN COURT ON 30 TH AUGUST, 2017. SD/- [R.S. SYAL] VICE PRESIDENT DATED, 30 TH AUGUST, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.