Raj Kumar Daga Vs The Assistant Commissioner of Income Tax, Circle – 30 (1)

Parties Involved

Facts Summary

The assessee, Raj Kumar Daga, proprietor of Anupam Steel Centre, contested the addition of Rs. 41,55,067/- on account of commission expenses disallowed by the Assessing Officer (AO). The AO disallowed the commission expense on the ground that the assessee failed to prove that the commission was paid to genuine persons. The AO noted that the assessee did not produce any of the commission recipients despite multiple requests. Additionally, the AO observed that 14 out of 24 parties had the same address and that the majority of the commission was paid in the last month of the financial year. The assessee argued that the payments were made through banking channels with TDS deductions and that the non-disclosure of commission income by the recipients did not render the expenses ingenuine.…

Legal Issues

• 1. Whether the addition of Rs. 41,55,067/- on account of disallowance of commission expenses is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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