ITO, Jind V. Smt. Urmila Devi, Jind

ITA 597/CHANDI/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8626 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: misc
• Appeal Filed On: 06-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH GUPTA
• Section: 131

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 597/CHD/2017 / ASSESSMENT YEAR : 2012-13 THE ITO, WARD-1, JIND VS. SMT. URMILA DEVI W/O SH. AMARJEET SINGH, V&PO JULANI, TEHSIL & DISTT. JIND ./PAN NO: AHSPD6364R / APPELLANT /RESPONDENT ! /ASSESSEE BY : SH. VIBHOR GARG, CA ' ! / REVENUE BY : SH. ASHISH GUPTA, CIT DR # $ % /DATE OF HEARING : 18.09.2018 &'() % / DATE OF PRONOUNCEMENT : 13.12 . 2018 (*/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER DATED 24.01.2017 OF THE COMMISSIONER OF INCOM E TAX(APPEALS), HISAR [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE CI T(A) IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER INTO THE I NCOME OF THE ASSESSEE OF RS. 87,32,000/- ON ACCOUNT OF DISALLOWANCE OF COMMI SSION. 3. THE BRIEF FACTS RELATING TO THE ISSUE ARE THAT THE ASSESSEE DURING THE YEAR HAS BEEN WORKING AS A MARKETING AGENT WITH M/S DAULPHIN TOWER ITA NO. 597-CHD-2017- SMT. URMILA DEVI, JIND 2 NETWORK (P) LTD. OUT OF THE COMMISSION RECEIVED O F RS. 1,11,00,000/- THE ASSESSEE CLAIMED THAT SHE HAD PAID THE COMMISSION A MOUNTING OF RS. 87,32,000/-TO NINE AGENTS / PERSONS FOR INTRODUCIN G NEW BUSINESS FOR JOINING MULTI-LEVEL MARKETING SYSTEM OF SALES. THE ASSESSING OFFICER DISALLOWED THE SAID COMMISSION PAID TO THE PERSONS ON THE PLEA THAT THE ABOVE SAID PERSONS WERE NOT HAVING ANY NEXUS WITH T HE BUSINESS ACTIVITY THAT WAS CARRIED ON BY THE ASSESSEE. 4. IN APPEAL BEFORE THE CIT(A, THE ASSESSEE PLEAD ED THAT THE AFORESAID PERSONS INTRODUCED TO THE ASSESSEE NEW PERSONS WHO BECOME MEMBERS IN THE MULTI-LEVEL MARKETING CHAIN BUSINESS. TO VERIFY THE FACTS, THE ASSESSING OFFICER SUMMONED FOUR PERSONS / AGENTS TO WHOM THE ASSESSEE HAD PAID COMMISSION AND RECORDED THEIR STATEMENTS U/S 131 OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'), WHEREIN, THEY CONFIRMED THAT THEY HAVE RECEIVED THE AFORESAID COMMISSION FROM THE ASSESSEE. 5. THE LD. CIT(A) AFTER CONSIDERING THE ABOVE FACTS AND THE ADMISSION OF THE PERSONS THAT THEY HAD ACTUALLY RECEIVED THE COMMISSION FROM THE ASSESSEE AND ALSO FURTHER CONSIDERING THE NATURE OF THE ACTIVITY CARRIED ON BY THE ASSESSEE, HELD THAT THE COMMISSION PAYMENTS WERE MADE BY THE ASSESSEE IN THE COURSE OF OBTAINING ORDER FOR THE ASSESSEES LINE OF BUSINESS. HE, ACCORDING DELETED THE ADDITIONS SO MA DE BY THE ASSESSING OFFICER. ITA NO. 597-CHD-2017- SMT. URMILA DEVI, JIND 3 6. AFTER CONSIDERING THE RIVAL CONTENTIONS OF THE L D. REPRESENTATIVES OF THE PARTIES, WE DO NOT FIND ANY REASON TO INTERFERE IN THE ORDER OF THE CIT(A) AND THE SAME IS ACCORDINGLY UPHELD. IN THE RESULT, THE APPEAL OF THE REVENUE IS HEREBY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 13.12.2018 SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 13.12. 2018 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR 1.