ITAT Ahmedabad Deletes Disallowances on Commission & Job Work- Genuine Business Expenditure Proven with TDS Compliance

RY Midas Metacast Private Limited Vs ITO (ITAT Ahmedabad) Assessee, a manufacturer engaged in casting & fabrication, filed appeal against the order of the NFAC dated 02.12.2024. The AO had made two disallowances- ₹ 25,41,797 being part of commission expenses treated as non-genuine, & ₹ 8,60,923 u/s 40(a)(ia) on alleged non-deduction of TDS on job-work charges. During assessment, AO observed that Assessee had paid commission of ₹ 37.49 lakh to four parties. Since one party (Varun Radiators Pvt Ltd) allegedly did not respond to notice u/s 133(6) & because such commission was ne...