Honest Marketing Pvt.Ltd., Nashik V. ACIT, Cir.1, Nashik, Nashik

ITA 97/PUN/2009

• Counselvise Citation: 9724514 RSA 2009
• Duration Of Justice: 3 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 12-04-2012
• Assessment Year: 2004-2005
• Appeal Filed On: 27-01-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALOK MISHRA
• Assessee Lawyers: SANJIV MU THA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHE B PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, J.M. AND SHRI R.K. PANDA, A.M. I.T.A. NO. 97/PN/2009 : A.Y. 2004-05 HONEST MARKETING PVT. LTD., KRISHNA KUTIR TILAKWADI, NASIK-2 PAN AABCH 5623 E .. APPELLANT VS. ASSTT. CIT CIR. 1 NASIK .. RESPONDENT APPELLANT BY: SHRI SANJIV MU THA RESPONDENT BY: SHRI ALOK MISHRA DATE OF HEARING : 12-4-2012 DATE OF PRONOUNCEMENT: 25-4-2012 ORDER PER SHAILENDRA KUMAR YADAV, JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE CIT(A)-II NASIK DATED 17-11-2008 FOR A.Y. 20 04-05 WHEREIN CONFIRMATION OF ADDITION ON ACCOUNT OF COMM ISSION ON SALE OF RS. 1,45,428/- HAS BEEN OPPOSED. 2. THE ASSESSEE IS A PRIVATE LIMITED COMPANY ENGAGE D IN WHOLESALE BUSINESS OF INDIAN MADE FOREIGN LIQUOR (I MFL). THE ASSESSING OFFICER HAS MADE CERTAIN ADDITIONS/DISALL OWANCES ON ACCOUNT OF INTEREST, SALARY PAID TO DIRECTOR, CO MMISSION PAYMENTS, LOANS ETC. THE MATTER WAS CARRIED BEFORE THE FIRST APPELLATE AUTHORITY WHO HAS CONFIRMED THE ACTION OF THE ASSESSING OFFICER. THE SAME HAS BEEN OPPOSED BEFO RE US BY THE ASSESSEE. HAVING HEARD BOTH THE PARTIES AND PE RUSING THE MATERIAL ON RECORD. WE FIND THAT THE ASSESSING OFF ICER HAS DISALLOWED THE PAYMENT OF COMMISSION ON THE SAME GR OUNDS STATING THAT NO EVIDENCE OR JUSTIFICATION OF RENDER ING SERVICES WAS FILED BY THE ASSESSEE. THE STAND OF THE ASSESS EE HAS BEEN THAT THE COMMISSION WAS PAID FOR PROMOTION OF BUSIN ESS TO ITA NO. 97/PN/2009 HONEST MARKETING A.Y. 2004-05 2 VARIOUS PEOPLE WHO WERE NOT RELATED TO THE COMPANY. A COPY OF THE LEDGER EXTRACT OF THE COMMISSION PAYMENTS WAS F ILED. ACCORDING TO THE ASSESSEE, BECAUSE THE SALES COMMIS SION WAS PAID TO VARIOUS PEOPLE, THE SALES OF THE COMPANY WA S INCREASED AND JUSTIFIED THE PAYMENT OF COMMISSION. THE REVEN UE IS DISPUTING ONLY THE PROOF OF PAYMENT. ONCE THE ASSE SSEE HAS FURNISHED THE LEDGER AND THE DETAILS OF COMMISSION PAYMENT, THE ASSESSING OFFICER COULD HAVE SUMMONED THE CONCE RNED COMMISSION PAYEE, WHICH GOES TO THE ROOT OF THE MAT TER. ACCORDING TO US, THIS NEEDS DEEP PROBE INTO THE MAT TER AND SO IN THE INTEREST OF JUSTICE, WE SET ASIDE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO DECIDE TH E SAME AFTER PROVIDING DUE OPPORTUNITY OF HEARING WITH REGARDS T O DISALLOWANCE OF COMMISSION PAYMENT FOR CLAIMED PROM OTION OF BUSINESS. SINCE WE ARE RESTORING THE MATTER ON A P RELIMINARY ISSUE, WE ARE REFRAINING TO COMMENT ON THE MERITS O F THE ISSUE AT HAND. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. DECISION IS PRONOUNCED IN THE OPEN COURT ON 25 TH APRIL 2012. SD/- SD/- (R.K. PANDA) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE DATED: 25 TH APRIL 2012 ANKAM COPY OF THE ORDER FORWARDED TO : 1. ASSESSEE 2. DEPARTMENT 3. CIT(A)-II NASIK 4. CIT-II NASIK 5. THE D.R, PUNE BENCH TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY ITA NO. 97/PN/2009 HONEST MARKETING A.Y. 2004-05 3 ITAT, BILASPUR BENCH CAMP RAIPUR