In Real Estate Broking Business passing of Commission is normal Practice

CA Sandeep Kanoi ACIT Vs. Shri Damodar Dass Batra (ITAT Delhi) Issue – The Ld. CIT (A) has erred in deleting the addition of Rs. 11,23,263/- made by the A.O. without considering the fact that these commission expenses are bogus and fictitious and could not be fully substantiated by the assessee. Held by CIT (A) Appellant has been serving as a Real Estate Broker who buys and sells properties of well-known Developers/Builders. An established fact in this trade is that commission/rebate/incentive, called by whatever name, is passed on to the early investors or the investors who buy the bulk...