‘Sexist Assumptions’ in CIT(A) Order: ITAT slams Authority for Ignoring Women’s Expertise, Deletes Sales Commission Disallowance [Read Order]

The Income Tax Appellate Tribunal (ITAT), Bangalore Bench, has strongly criticised the Commissioner of Income Tax (Appeals) [CIT(A)] for making sexist and baseless assumptions while disallowing sales commission paid by the assessee to 3 women professionals.

The background issue is that, the Commissioner of Income Tax (Appeals) [CIT(A)] refused to accept commission payments made to six individuals, where three of whom were women, on the reasoning that “it is not easy to conceive that these ladies could have been involved in the exacting process of making sales of industrial pumps.”

The Tribunal, in its order, found this observation entirely unjustified, factually incorrect, and reflective of a prejudiced mindset. It clearly objected to the patriarchal observation of the Commissioner of Income Tax appellate authority.

According to the Tribunal order, the CIT(A) singled out women recipients by questioning their capability based purely on gender. The ITAT noted that this approach ignored concrete evidence placed on record, including educational qualifications, professional backgrounds, and long association with the company.

Also Read:Cash Sales of Jeweller on Demonetisation Day Held Genuine: ITAT Deletes S.68 Addition as Books Were Not Rejected [Read Order]

The Tribunal said that the women in the issue were professional and in fact qualified and actively involved in technical, administrative, and customer-focused activities of the company. The Tribunal further pointed out that all recipients had reported the commission income in their tax returns and TDS had been duly deducted.

The bench of Keshav Dubey ( Judicial member) and Prashant Maharishi ( Vice President ) observed that “The learned CIT-A has also held that it is not easy for him to conceive that these ladies could have been involved in the exacting the process of making sales of industrial pumps to manufacturing units. This is merely an assumption. He has not looked into the credential of the educational qualification and association of these women with the company. He has also overlooked the No. of years these women has spent with the company which is explained by the assessee as indicated above.”

Understanding Common Mode of Tax Evasion with Practical Scenarios, Click Here

The ITAT observed that the CIT(A) arrived at conclusions based on conjecture, gender bias, and personal assumptions, rather than on material evidence. It said that the tax authorities cannot disallow legitimate expenses simply because the commission recipients are related to directors or because the authority harbours preconceived notions about women’s participation in industrial or technical sectors.

The Tribunal concluded that such thinking devalues the professional contributions of qualified women and is both factually and legally incorrect.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates