M/S Dashmesh Mechanical Works, ... vs Department Of Income Tax on 15 November, 2011
All the persons were
identif iable, details of sales made through them was
avail able; payment was made through account payee
cheque incase of all persons except one to whom it has
been paid in kind and had been accounted f or by each
person in his return of income. The increase in
commission expenses cannot be the basis of any
disallo wance especially when the genuineness of the
same stands established. The expenses have been
incurred wholly and exclusively for the purpose of
7
business keeping in vie w the ratio of judgment of
Hon'ble Supreme Court in the case of Sassoon J David
Company P.Ltd. v CIT 118 ITR 261 and the Hon'ble
jurisdictional ITAT in the case of Smt.Satinder jeet
Kaur v ITO 52 TTJ 388, it is held that the ld. AO was
not justif ied in making disallo wance of commission
expenses of Rs.1162770/-. The addition of
Rs.1162770/- is theref ore deleted."