M/s Unique Sales Agencies, Kolkata V. ITO, WD-34(2), KOLKATA, Kolkata

ITA 931/KOL/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7902 (ITAT-KOLKATA)
• Duration Of Justice: 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 09-05-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

I.T.A. NO . 931 / KOL ./201 4 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER I.T.A. NO. 9 3 1 / KOL / 20 1 4 ASSESSMENT YEAR : 200 6 - 20 0 7 M/S. UNIQUE SALES AGENCIES,.............. ..... .... ............. .. .APP ELL ANT 215, OLD C HINA BAZAR STREET, KOLKATA - 700 001 [PAN : A AAFU 9151 C ] - VS. - INCOME TAX OFFICER,........................ .............. ... . RESPONDENT WARD - 34(2), KOLKATA APPEARANCES BY: SHRI GAURAV MATHUR , A DVOCATE , FOR THE ASSESSEE S MT. RANU BISWAS , J CIT, S R. D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : NOVEMBER 2 5 , 2 01 4 DATE OF PRONOUNCING THE ORDER : NOVEMBER 25 , 201 4 O R D E R PER GEORGE MATHAN : THIS IS AN APPEAL FILED BY THE ASSESSE E AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) - XX, KOLKATA IN APPEAL NO. 271 / CIT(A) - XX/ WD - 3 6 ( 4 ) / 11 - 1 2/KOL. DATED 2 8 . 0 4 .201 4 FOR THE ASSESSMENT YEAR 200 6 - 0 7 . 2. SHRI GAURAV MATHUR, ADVOCATE , REPRESENTED ON BEHALF OF THE ASSESSEE AND SMT. RANU BISWAS, JCIT, SR. D.R. REPRESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LD. A.R THAT THE ONLY ISSUE IN THIS APPEAL WAS AGAINST THE ACTION OF THE LD. CIT(APPEALS) IN CONFIRMING THE DISALLOWANCE OF RS.50,500/ - PAID AS COMMISSION TO SHRI SURESH AGARWAL. IT WAS THE SUBMISSION THAT THE A SSESSEE IS A TRADER OF ELECTRONIC ITEMS. IN THE COURSE OF ASSESSMENT, IT WAS NOTICED THAT THE ASSESSEE HAD PAID COMMISSION TO TWO PERSONS, NAMELY SHRI SURESH AGARWAL AND SHRI ABHAY AGARWAL. AS THE ASSESSING OFFICER SUSPECTED THE TRANSACTIONS, HE HAD I.T.A. NO . 931 / KOL ./201 4 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 2 OF 3 MADE A DISALLOWANCE OF COMMISSION. IT WAS THE SUBMISSION THAT ON APPEAL BEFORE THE LD. CIT(APPEALS), LD. CIT(APPEALS) ACCEPTED THE CLAIM OF THE COMMISSION PAYMENT TO SHRI ABHAY AGARWAL, BUT HOWEVER, CONFIRMED THE DISALLOWANCE OF COMMISSION IN RESPECT OF SHRI SUR ESH AGARWAL. IT WAS THE SUBMISSION THAT THE LD. A.R. PLACED BEFORE ME A COPY OF THE LETER FROM SHRI SURESH AGARWAL CONFIRMING THE RECEIPT OF COMMISSION OF RS.50,500/ - . HE ALSO DREW OUR ATTENTION TO THE BALANCE - SHEET AND PROFIT & LOSS ACCOUNT WITH SHRI SURE SH AGARWAL WHEREIN THE COMMISSION RECEIPT HAS BEEN OFFERED TO TAX. IT WAS THE SUBMISSION THAT THE ADDITION AS MADE BY THE ASSESSING OFFICER AND AS CONFIRMED BY THE LD. CIT(APPEALS) WAS LIABLE TO BE DELETED. 4. IN REPLY, LD. SR. D.R. VEHEMENTLY SUPPORTED TH E ORDER OF THE ASSESSING OFFICER AND LD. CIT(APPEALS). 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERUSAL OF THE ASSESSMENT ORDER CLEARLY SHOWS THAT IN RESPECT OF SHRI ABHAY AGARWAL THE COMMISSION PAID IS 1% OF THE SALES. HOWEVER, A PERUSAL OF THE LETT ER OF SHRI SURESH AGARWAL SHOWS THAT THE COMMISSION PAID IS AT 5% OF THE ALLEGED SALES. SHRI SURESH AGARWAL HAS ALSO NOT APPEARED BEFORE THE ASSESSING OFFICER NOR RESPONDED TO THE NOTICE ISSUED UNDER SECTION 131. A PERUSAL OF THE PROFIT & LOSS ACCOUNT AND BALANCE - SHEET OF SHRI SURESH AGARWAL SHOWS THAT HE HAS INCURRED NO EXPENDITURE AT ALL. IN THESE CIRCUMSTANCES, I AM OF THE VIEW THAT THE COMMISSION PAID TO SHRI SURESH AGARWAL HAS BEEN RIGHTLY DISALLOWED BY THE ASSESSING OFFICER AND CONFIRMED BY THE LD. CI T(APPEALS). 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH NOV EMBER , 2014. SD/ - GEORGE MATHAN ( JUDICIAL MEMBER) KOLKATA, THE 25 TH D AY OF NOVE MBER , 201 4 I.T.A. NO . 931 / KOL ./201 4 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 3 OF 3 COPIES TO : (1) M/S. UNIQUE SALES AGENCIES, 215, OLD CHINA BAZAR STREET, KOLKATA - 700 001 (2) INCOME TAX OFFICER, WARD - 34(2), KOLKATA (3) COMMISSIONER OF INCOME - TAX (APPEALS) (4) COMMISSIONER OF INCOME TAX ( 5 ) THE DEP ARTMENTAL REPRESENTATIVE ( 6 ) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S .