Commission Disallowance Remanded – 133(6) Non-Response Not Sufficient; Ad-hoc Expenses Cut to 10%

Smt. Suman Prakash Utekar Vs ACIT (ITAT Mumbai) The Mumbai ITAT set aside the disallowance of ₹95.81 lakh commission expenditure, holding that mere non-response to notices u/s 133(6) cannot justify addition without proper verification, and restored the matter to the AO for fresh examination. The AO had: Disallowed commission expenses u/s 68 due to non-response by parties, Ignored that payments were made through banking channels with TDS deduction u/s 194H, Made further ad-hoc disallowances @20% on various expenses. The CIT(A) upheld the additions, stating that: Cheque payments and TDS do ...