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| The Tax Publishers2019 TaxPub(DT) 8097 (Del-Trib) INCOME TAX ACT, 1961
Section 37(1)
Since assessee had not given any documentary evidence as regards to the payment made to the so-called agent and evidence was not before AO as well as before CIT(A), therefore, in absence of any evidence, CIT(A) had rightly confirmed this addition on account of commission expenses.
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Business expenditure - Commission payment - No evidence as to incurring to expenditure -
AO made disallowance of Rs. 5,00,000 on account of commission paid on sale of property. Assessee submitted that usually for carrying out any purchase and sale transactions in the case of property, an agent was hired and the same was a common practice. The range of commission in such type of business varies from 1% to 2%, therefore, payment of commission in case in hand was very reasonable commission amounting only to 0.1590% and therefore claim of assessee could not be denied. Held: As regards commission paid, assessee had not given any documentary evidence as regards to the payment made to the so-called agent. The evidence was not before AO as well as before CIT(A). Therefore, in absence of any evidence, CIT(A) had rightly confirmed this addition on account of commission expenses.
REFERRED :
FAVOUR : Against the assessee
A.Y. :
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