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The Tax Publishers2022 TaxPub(DT) 7667 (Del-Trib) INCOME TAX ACT, 1961
Section 37(1)
Despite various opportunities, assessee could not justify payment of commission of Rs. 18 crores to 13 persons for a single land deal, therefore, AO was justified in disallowing deduction.
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Business expenditure - Commission expenses - Commission paid to 13 persons for a single land deal not substantiated with evidences -
AO noticed that gross turnover of assessee company was at Rs.18 crores by sale of land. Assessee had single land transaction of Rs.18 crores made between parent company and subsidiary company and paid commission on this single transaction to 13 different parties and claimed commission expenses of Rs. 1,16,24,445 in P & L A/c. AO asked assessee to furnish details and purpose/justification of commissions so paid. Being not satisfied with the explanation of assessee, AO made the addition of Rs. 1,16,24,445. Held: Despite various opportunities, assessee could not justify payment of commission. Therefore, disallowance made by AO was justified.
REFERRED :
FAVOUR : Against the assessee.
A.Y. : 2013-14
IN THE ITAT, DELHI BENCH
ANIL CHATURVEDI, A.M. & ANUBHAV SHARMA, J.M.
Hightech Infrahomes (P) Ltd. v. ITO
I.T.A. No. 2059/Del./2019
18 November, 2022
Assessee by: None
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