The Income Tax Appellate Tribunal (ITAT), Mumbai Bench ruled that the tribunal erred in upholding the disallowance of commission payment as no document was considered.
The assessee, Paresh V. Shah was engaged in the business of wholesale ferrous and nonferrous metal and alloys. During the course of the scrutiny assessment, the Assessing Officer found that the assessee has paid a commission totaling Rs.4,37,370 to the parties which were claimed as an expenditure.
The Assessing Officer issued a notice under section 133(6) in order to verify the Applicant’s claim of commission expenditure. The said notice under section 133(6) returned unserved as the said parties were out of town at the time when the notice was intended to be served. The assessee contended that the sole fact that notice under section 133(6) returned unserved, does not form a valid ground for disallowing the entire commission expenditure. Without considering the assessee’s contentions, the Assessing Officer/passed an order making additions of the entire amount of the commission expenditure as nongenuine and also made the addition of certain other expenses considering them to be personal in nature. In the course of appeal before the CIT(A), the Applicant submitted a paper book.
The assessee urged that the ITAT has felt into apparent error while upholding the disallowance of commission payment by not taking into account the documents which were submitted.
It is the contention of the assessee that the ITAT has committed error in appreciating the evidence by way of a paper-book which was duly submitted and the tribunal mistakenly noted that no evidence has been submitted in support of the claim.
The coram of Accountant Member, Shamim Yahya held that there is an apparent mistake inasmuch as the tribunal has missed out the paper-book submitted, the order of the tribunal deserves to be recalled.
The tribunal directed the registry to fix the appeal in a normal course on May 17, 2021.
Subscribe Taxscan Premium to view the Judgment
Support our journalism by subscribing to Taxscan AdFree. We welcome your comments at info@taxscan.in
