Case Law Details
Yogendra Khandelwal Vs ACIT (ITAT Jaipur)
FACTS –
COMMISSION OF SALE AND PURCHASE TO RELATED PARTIES –
During assessment proceeding, AO observed that assessee had paid commission on sale of INR 8,04,234 to Smt. Pushpa, prop. of M/s. Steel Corporation who is wife of the assessee and commission on purchase of INR 7,78,597 to Shri Arpit who is son of the assessee. Notice was issued to the assessee to show cause as to why the commission should not be treated as bogus commission and added to the total income.
With regard to commission on sales paid to Smt. Pusha, assessee submitted that commission was paid on supplies of goods through M/s. Steel Corporation. Audit report mentioned business of M/s Steel as trading in iron and steel does not mean only own purchase and sale, it also covers supplies of iron and steel goods through other parties on commission basis. Payment to relative could not be presumed without any evidences that payment is bogus.
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